Last checked at 29 Oct 2018 14:08
LCK/CS/2018-19/ October 29, 2018
The General Manager Pakistan Stock Exchange Limited Karachi | The Deputy Chief Securities & Exchange Commission of Pakistan Islamabad | The London Stock Exchange 10 Paternoster Square, London |
Dear Sir(s)
Financial Results for the 1st Quarter ended September 30, 2018
We have to inform you that the Board of Directors of our Company in their Meeting held on Monday, October 29, 2018 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:
(i) Cash Dividend Nil
(ii) Bonus Issue Nil
(iii) Right Issue Nil
(iv) Any other Entitlement / Corporate Action Nil
(v) Any other Price-Sensitive information Nil
The financial results of the Company consisting of unconsolidated and consolidated condensed interim statements of financial position, profit or loss and other comprehensive income and directors' report are annexed.
The quarterly report of the Company for the period ended September 30, 2018 will also be transmitted through PUCARS separately, within specified time.
Yours truly,
for: LUCKY CEMENT LIMITED
IRFAN CHAWALA
Director Finance / CFO
Unconsolidated Condensed Interim Statement of Financial Position |
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As at September 30, 2018 |
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| (Un-audited) |
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| (Audited) |
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| September 30, |
|
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| June 30, |
|
|
|
|
| 2018 |
|
|
| 2018 |
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|
|
|
| (PKR in '000') |
| ||||
ASSETS |
|
|
|
|
|
|
|
| |
NON-CURRENT ASSETS |
|
|
|
|
|
|
| ||
| Fixed assets |
|
|
|
|
|
|
| |
| Property, plant and equipment |
| 41,709,542 |
|
|
| 40,913,168 |
| |
| Intangible assets |
| 50,891 |
|
|
| 55,023 |
| |
|
|
|
| 41,760,433 |
|
|
| 40,968,191 |
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
| 28,614,700 |
|
|
| 24,981,078 |
| |
| Long-term advances |
| 88,327 |
|
|
| 90,996 |
| |
| Long-term deposits |
| 3,175 |
|
|
| 3,175 |
| |
|
|
|
| 70,466,635 |
|
|
| 66,043,440 |
|
CURRENT ASSETS |
|
|
|
|
|
|
| ||
| Stores and spares |
| 9,830,364 |
|
|
| 7,783,111 |
| |
| Stock-in-trade |
| 3,065,971 |
|
|
| 2,796,658 |
| |
| Trade debts |
| 2,249,068 |
|
|
| 2,424,470 |
| |
| Loans and advances |
| 327,201 |
|
|
| 420,671 |
| |
| Trade deposits and short term prepayments |
| 73,307 |
|
|
| 67,577 |
| |
| Accrued return |
| 124,500 |
|
|
| 142,881 |
| |
| Other receivables |
| 1,625,778 |
|
|
| 1,311,180 |
| |
| Tax refunds due from the Government |
| 538,812 |
|
|
| 538,812 |
| |
| Short term investment |
| 28,620 |
|
|
| 34,956 |
| |
| Cash and bank balances |
| 22,641,971 |
|
|
| 27,435,361 |
| |
|
|
|
| 40,505,592 |
|
|
| 42,955,677 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| 110,972,227 |
|
|
| 108,999,117 |
| ||
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|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
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|
|
|
|
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| ||
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
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| ||
|
|
|
|
|
|
|
|
|
|
Share capital |
| 3,233,750 |
|
|
| 3,233,750 |
| ||
Reserves |
|
| 83,033,517 |
|
|
| 83,133,072 |
| |
|
|
|
| 86,267,267 |
|
|
| 86,366,822 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
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| ||
|
|
|
|
|
|
|
|
|
|
| Long-term deposits |
| 96,894 |
|
|
| 94,394 |
| |
| Deferred liabilities |
| 7,220,317 |
|
|
| 7,300,639 |
| |
|
|
|
| 7,317,211 |
|
|
| 7,395,033 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
| ||
| Trade and other payables |
| 12,570,173 |
|
|
| 13,121,005 |
| |
| Unclaimed dividend |
| 47,740 |
|
|
| 47,945 |
| |
| Unpaid dividend |
| 2,669,960 |
|
|
| 82,960 |
| |
| Taxation - net |
| 2,099,876 |
|
|
| 1,985,352 |
| |
|
|
|
| 17,387,749 |
|
|
| 15,237,262 |
|
|
|
|
| 24,704,960 |
|
|
| 22,632,295 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
| 110,972,227 |
|
|
| 108,999,117 |
| ||
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income | |||||||||
For the 1st quarter ended September 30, 2018 (Un-audited) | |||||||||
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|
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| September 30, |
| September 30, |
|
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|
|
|
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| 2018 |
| 2017 |
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|
|
|
|
|
| (PKR in '000') |
| ||
|
|
|
|
|
|
|
|
|
|
Gross sales |
|
|
| 16,011,063 |
| 15,695,183 |
| ||
|
|
|
|
|
|
|
|
|
|
Less: | Sales tax and federal excise duty |
|
| 4,390,612 |
| 4,292,591 |
| ||
| Rebates and commission |
|
| 215,383 |
| 198,811 |
| ||
|
|
|
|
|
| 4,605,995 |
| 4,491,402 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
| 11,405,068 |
| 11,203,781 |
| |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
| (7,980,649) |
| (7,090,537) |
| ||
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
| 3,424,419 |
| 4,113,244 |
| ||
|
|
|
|
|
|
|
|
|
|
Distribution cost |
|
| (657,519) |
| (369,351) |
| |||
Administrative expenses |
|
| (273,776) |
| (281,268) |
| |||
Other expenses |
|
| (245,456) |
| (294,255) |
| |||
Other income |
|
|
| 644,329 |
| 532,396 |
| ||
|
|
|
|
|
|
|
|
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|
Profit before taxation |
|
| 2,891,997 |
| 3,700,766 |
| |||
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Taxation |
|
|
|
|
|
|
|
| |
| -current |
|
|
| (550,355) |
| (933,105) |
| |
| -deferred |
|
| 151,189 |
| 249,622 |
| ||
|
|
|
|
|
| (399,166) |
| (683,483) |
|
|
|
|
|
|
|
|
|
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|
Profit after taxation |
|
| 2,492,831 |
| 3,017,283 |
| |||
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Other comprehensive income: |
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Other comprehensive loss which will not be reclassified to statement of profit or loss in subsequent periods |
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| |||
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|
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| Unrealized loss on remeasurement of equity investment at | (6,336) |
| (5,115) |
| ||||
| fair value through other comprenensive income |
|
|
|
| ||||
| Deferred tax thereon |
|
| 950 |
| 767 |
| ||
|
|
|
|
|
| (5,386) |
| (4,348) |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
| 2,487,445 |
| 3,012,935 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (PKR) |
| ||
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
|
| 7.71 |
| 9.33 |
| |||
Condensed Interim Consolidated Statement of Financial Position | |||||||||
As at September 30, 2018 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Un-audited) |
|
|
| (Audited) |
|
|
|
|
| September 30, |
|
|
| June 30, |
|
|
|
|
| 2018 |
|
|
| 2018 |
|
|
|
|
| (PKR in '000') | ||||
| ASSETS |
|
|
|
|
|
|
| |
| NON-CURRENT ASSETS |
|
|
|
|
|
| ||
| Fixed assets |
|
|
|
|
|
|
| |
| Property, plant and equipment |
| 84,268,759 |
|
|
| 73,865,002 | ||
| Intangible assets |
| 7,865,414 |
|
|
| 7,943,988 | ||
|
|
|
|
| 92,134,173 |
|
|
| 81,808,990 |
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
| 14,163,070 |
|
|
| 13,642,987 | ||
| Long-term loans and advances |
| 562,883 |
|
|
| 534,786 | ||
| Long-term deposits and prepayments |
| 46,422 |
|
|
| 53,325 | ||
|
|
|
|
| 106,906,548 |
|
|
| 96,040,088 |
| CURRENT ASSETS |
|
|
|
|
|
| ||
| Stores, spares and consumables |
| 10,917,337 |
|
|
| 8,854,536 | ||
| Stock-in-trade |
|
| 13,967,112 |
|
|
| 12,088,621 | |
| Trade debts |
|
| 4,776,008 |
|
|
| 5,142,591 | |
| Loans and advances |
|
| 1,117,319 |
|
|
| 1,117,485 | |
| Trade deposits and short-term prepayments |
| 1,293,833 |
|
|
| 1,108,185 | ||
| Other receivables |
|
| 4,134,539 |
|
|
| 3,431,926 | |
| Tax refunds due from the Government |
| 538,812 |
|
|
| 538,812 | ||
| Taxation receivable |
|
| 1,864,915 |
|
|
| 2,221,851 | |
| Accrued return |
|
| 127,487 |
|
|
| 161,742 | |
| Short term investments |
| 28,620 |
|
|
| 34,956 | ||
| Cash and bank balances |
| 25,496,632 |
|
|
| 34,382,272 | ||
|
|
|
|
| 64,262,614 |
|
|
| 69,082,977 |
|
|
|
|
|
|
|
|
|
|
| TOTAL ASSETS |
|
| 171,169,162 |
|
|
| 165,123,065 | |
|
|
|
|
|
|
|
|
|
|
| EQUITY AND LIABILITIES |
|
|
|
|
|
| ||
| SHARE CAPITAL AND RESERVES |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
3,233,750 |
|
|
|
3,233,750 | |
| Reserves |
|
| 94,465,135 |
|
|
| 93,913,157 | |
|
|
|
|
|
|
|
|
|
|
| Attributable to the owners of the Holding Company |
| 97,698,885 |
|
|
| 97,146,907 | ||
| Non-controlling interests |
| 13,417,001 |
|
|
| 12,428,264 | ||
| Total equity |
|
| 111,115,886 |
|
|
| 109,575,171 | |
|
|
|
|
|
|
|
|
|
|
| NON-CURRENT LIABILITIES |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| Long-term finances |
|
| 8,321,749 |
|
|
| 8,789,887 | |
| Long-term deposits |
|
| 96,894 |
|
|
| 94,394 | |
| Deferred liabilities |
|
| 10,399,388 |
|
|
| 10,640,736 | |
| Other long term liabilities |
| 3,695,810 |
|
|
| 3,431,948 | ||
|
|
|
|
| 22,513,841 |
|
|
| 22,956,965 |
| CURRENT LIABILITIES |
|
|
|
|
|
| ||
| Trade and other payables |
| 22,376,201 |
|
|
| 20,242,935 | ||
| Unclaimed dividend |
|
| 47,740 |
|
|
| 47,945 | |
| Unpaid dividend |
|
| 2,669,960 |
|
|
| 82,960 | |
| Provision for taxation |
| 2,099,876 |
|
|
| 1,992,278 | ||
| Accrued return |
|
| 306,032 |
|
|
| 272,146 | |
| Short-term borrowings and running finance |
| 6,854,898 |
|
|
| 7,332,327 | ||
| Current portion of liabilities against assets subject to finance lease |
| 488 |
|
|
| 822 | ||
| Current portion of long-term finances |
| 3,184,240 |
|
|
| 2,619,516 | ||
|
|
|
|
| 37,539,435 |
|
|
| 32,590,929 |
|
|
|
|
| 60,053,276 |
|
|
| 55,547,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL EQUITY AND LIABILITIES |
| 171,169,162 |
|
|
| 165,123,065 | ||
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income For the 1st quarter ended September 30, 2018 (Un-audited) | ||||||
|
|
|
| September 30, |
| September 30, |
|
|
|
| 2018 |
| 2017 |
|
|
|
| (PKR in '000') | ||
|
|
|
|
|
|
|
Gross sales |
|
| 31,315,454 |
| 28,683,436 | |
|
|
|
|
|
|
|
Less: | Sales tax and excise duty |
| 5,242,966 |
| 4,962,359 | |
| Rebates and commission |
| 1,227,866 |
| 1,138,222 | |
|
|
|
| 6,470,832 |
| 6,100,581 |
|
|
|
|
|
|
|
Net sales |
|
| 24,844,622 |
| 22,582,855 | |
|
|
|
|
|
|
|
Cost of sales |
|
| (19,256,664) |
| (16,493,943) | |
|
|
|
|
|
|
|
Gross profit |
|
| 5,587,958 |
| 6,088,912 | |
|
|
|
|
|
|
|
Distribution cost |
|
| (1,383,702) |
| (1,012,094) | |
Administrative expenses |
| (755,830) |
| (621,023) | ||
Finance cost |
|
| (357,213) |
| (165,097) | |
Other expenses |
|
| (341,773) |
| (398,719) | |
Other income |
|
| 1,152,742 |
| 1,223,738 | |
|
|
|
|
|
|
|
Profit before taxation |
| 3,902,182 |
| 5,115,717 | ||
|
|
|
|
|
|
|
Taxation |
|
|
|
|
| |
| - current |
|
| (1,063,608) |
| (1,261,929) |
| - deferred |
|
| 323,216 |
| 313,943 |
|
|
|
| (740,392) |
| (947,987) |
|
|
|
|
|
|
|
Profit after taxation |
| 3,161,790 |
| 4,167,730 | ||
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
| |
Owners of the Holding Company |
| 2,955,800 |
| 3,847,169 | ||
Non-controlling interests |
| 205,990 |
| 320,561 | ||
|
|
|
|
|
|
|
|
|
|
| 3,161,790 |
| 4,167,730 |
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
|
| ||
|
|
|
|
|
|
|
Other comprehensive income which may be reclassified to statement of |
|
| ||||
profit or loss in subsequent periods |
|
|
|
| ||
|
|
|
|
|
|
|
| Foreign exchange differences on translation of foreign operations | 189,113 |
| 35,987 | ||
|
|
|
|
|
|
|
Other comprehensive loss which will not be reclassified to statement of profit or |
|
| ||||
loss in subsequent period |
|
|
|
| ||
|
|
|
|
|
|
|
Unrealized loss on re-measurement of equity investment at fair value through other comprehensive income |
|
(6,336) |
|
(5,115) | ||
Deferred tax thereon |
| 950 |
| 767 | ||
|
|
|
| (5,386) |
| (4,348) |
|
|
|
|
|
|
|
Total comprehensive income for the period |
| 3,345,517 |
| 4,199,369 | ||
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
| |
Owners of the Holding Company |
| 3,139,527 |
| 3,878,808 | ||
Non-controlling interests |
| 205,990 |
| 320,561 | ||
|
|
|
|
|
|
|
|
|
|
| 3,345,517 |
| 4,199,369 |
|
|
|
|
|
|
|
|
|
|
| (PKR) | ||
Earnings per share - basic and diluted |
| 9.14 |
| 11.90 | ||
Directors' Report (Condensed)
The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, stand-alone and consolidated unaudited financial statements for the first quarter ended September 30, 2018.
Overview
Cement industry in Pakistan grew by 4.5% to 10.81 million tons during the first quarter ended September 30, 2018 in comparison to 10.35 million tons during the same period last year. While local sales volume registered a decline of 0.4% to 9.02 million tons during the first quarter in comparison to 9.06 million tons during the same period last year; export sales volume registered an increase of 39.2% to 1.79 million tons during the quarter under review as compared to 1.29 million tons in the same period last year.
Your Company achieved an overall growth of 4.9% with total sales volume of 1.90 million tons during the first quarter as compared to 1.80 million tons sold in the same period last year.
While local cement sales volume registered a decline of 5.9% (North 9.1% and South 2.2%) in the first quarter to reach 1.40 million tons as compared to 1.48 million tons in the same period last year. Whereas, due to no clinker sales during the quarter under review, overall local sales volumes declined by 9.1% to reach 1.40 million tons as compared to 1.54 million tons in the same period last year. On the other hand, export sales volume increased by 85.1% to reach 0.50 million tons during the current quarter as compared to 0.27 million tons during the same period last year.
On a consolidated basis, your Company achieved a gross turnover of PKR 31.32 billion which is 9.2% higher as compared to the same period last year's turnover of PKR 28.68 billion.
Moreover, consolidated Net Profit of the Company was PKR 3.16 billion of which PKR 0.21 billion is attributable to non-controlling interests which translates into an EPS of PKR ---9.14 during the first quarter of the fiscal year 2018-19 as compared to PKR 11.90 during the same period last year.
Business Performance
a. Production & Sales Volume Performance - Standalone
The standalone production and sales statistics of your Company for the first quarter of the financial year 2018-19 compared to the same period last year are as follows:
|
|
|
|
| |||
|
|
| |
Clinker Production | 1,801 | 1,533 | 17.5% |
Cement Production | 1,665 | 1,711 | (2.7%) |
Cement Sales | 1,654 | 1,752 | (5.6%) |
Clinker Sales | 239 | 52 | 359.6% |
The production and sales volume data is graphically presented as under:
A comparison of the dispatches of the industry and your Company's standalone business for the first quarter of the financial year 2018-19 with the same period last year is presented below:
|
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|
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| ||
|
|
|
| ||||
|
|
|
|
|
|
|
|
Cement Industry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales | 9,022 |
| 9,061 |
| (39) |
| (0.4%) |
|
|
|
|
|
|
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 1,146 |
| 1,225 |
| (79) |
| (6.4%) |
- Loose | 21 |
| 62 |
| (41) |
| (66.1%) |
- Clinker | 624 |
| - |
| 624 |
| 100.0% |
Total Exports | 1,791 |
| 1,287 |
| 504 |
| 39.2% |
Grand Total | 10,813 |
| 10,348 |
| 465 |
| 4.5% |
|
|
|
|
|
|
|
|
Lucky Cement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales |
|
|
|
|
|
|
|
- Cement | 1,395 |
| 1,483 |
| (88) |
| (5.9%) |
- Clinker | - |
| 52 |
| (52) |
| (100.0%) |
Total Local Sales | 1,395 |
| 1,535 |
| (140) |
| (9.1%) |
|
|
|
|
|
|
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 238 |
| 207 |
| 31 |
| 15.0% |
- Loose | 21 |
| 62 |
| (41) |
| (66.1%) |
- Clinker | 239 |
| - |
| 239 |
| 100.0% |
Total Exports | 498 |
| 269 |
| 229 |
| 85.1% |
Grand Total | 1,893 |
| 1,804 |
| 89 |
| 4.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales | 15.5% |
| 16.9% |
| (8.3%) |
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 20.8% |
| 16.9% |
| 23.7% |
|
|
- Loose | 100.0% |
| 100.0% |
| - |
|
|
- Clinker | 38.3% |
| - |
| 100.0% |
|
|
Total Export | 27.8% |
| 20.9% |
| 33.0% |
|
|
Grand Total | 17.5% |
| 17.4% |
| 0.6% |
|
|
b. Financial Performance
The standalone financial performance of your Company for the first quarter of the fiscal year ended 2018-19 as compared to the same period last year is presented below:
| |||||||||||||||||||||||||||||||||||||||||
Revenue During the first quarter of 2018-19 under review, your Company achieved an overall gross sales revenue growth of 2.0% as compared to the same period last year. This was mainly due to the impact of higher Volumes and increase in Federal Excise Duty and Sales Tax. |
Cost of Sales During the first quarter under review, per ton cost of sales of your Company increased by 7.3% as compared to the same period last year. The increase was mainly attributable to increase in coal, packing material and other fuel prices. | ||||||||||||||||||||||||||||||||||||||||
Distribution of Gross Revenue | Distribution of Cost of Sales |
Gross Profit Your Company achieved a gross profit margin of 30.0% for the quarter under review as compared to 36.7% reported during the same period last year. |
|
Net Profit
Your Company achieved a profit before tax of PKR 2,892.0 million during the quarter under review as compared to PKR 3,700.8 million reported during the same period last year. Similarly, after tax profit of PKR 2,492.8 million was achieved during the quarter under review as compared to PKR 3,017.3 million reported during the same period last year.
|
|
Earnings per share
The earnings per share of your Company for the quarter ended September 30, 2018 was PKR 7.71 in comparison to PKR 9.33 reported during the same period last year. |
|
Projects - New and Ongoing
Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum
Civil works at the site are currently in progress and the project remains on target to achieve commercial operations in the last quarter of calendar year 2019.
Investments
Investment in 1 x 660 MW, supercritical, coal based power project
Your Company had achieved financial close of the project on 25th June, 2018 after fulfilling all the necessary conditions and accordingly, PPIB also issued the necessary guarantee from the Government of Pakistan under the Implementation Agreement. Construction work at project site is running satisfactorily to achieve the target date for Commercial Operations of 1st March, 2021.
Investment in automotive manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]
KLM started construction of the project in November 2017 and has also signed a New Entrant Agreement with the Ministry of Industries & Production under the Automotive Development Policy 2016-2021 in December 2017.
On 1st June 2018, KLM started its Complete Built Up (CBU) operations. It has opened up several, company owned / third party operated dealerships in some of the metro cities of Pakistan. The Project aims to start commercial production in second quarter of calendar year 2019.
Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum
The company is currently in negotiation with the potential suppliers of plant and machinery and financial institutions. Target to achieve financial close is last quarter of calendar year 2018.
Corporate Social Responsibility
Your Company remains committed to value creation in the society and the communities in which it operates, with primary focus of its CSR initiatives in Education, Women empowerment, Health initiatives and Environment conservation.
Education / Scholarships
Continuing on the agenda to support the deserving students of the society, during the quarter under review your Company extended a number of scholarships to various students of LUMS, IBA and other leading universities of Pakistan.
Women Empowerment
Prioritizing its emphasis on women empowerment, Lucky Cement continued its support for two leading Government girls' schools in Karachi in collaboration with Zindagi Trust. With the primary objective of social intervention in the development of women's education in the Country, your Company has transformed these schools into model educational institutions for girls of Pakistan.
Health Initiatives
Provision of quality healthcare continues to remain your Company's priority, especially through financial support of Aziz Tabba Foundation; a prominent philanthropic institution that is running Tabba Heart and Tabba Kidney institutes, which provide vital support in bridging the gap of specialized and modern medical care in the Country.
Environment Conservation
Your Company always takes responsibility towards the environment seriously and in an effort to highlight the importance of environment conservation; during the quarter under review, a tree plantation drive was launched and free tree saplings were distributed amongst the employees to contribute towards making Pakistan greener and environment friendly.
Outlook
The future outlook for the Cement industry remains positive and domestic sales are expected to improve on the back of new Government's initiatives to build both small and mega-capacity / multipurpose water reservoirs/ dams and '5 million housing scheme' to construct affordable houses for public at large; whereas, export sales are anticipated to remain strong in view of favorable market dynamics and increasing demand for Clinker in the regional export markets.
Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.
Acknowledgement
Directors of your Company take this opportunity to express sincere gratitude and appreciation for unrelenting commitment and contribution of its people and the trust and confidence placed in the Company by all the stakeholders.
On behalf of the Board
MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA
Chairman / Director Chief Executive / Director
Karachi: October 29, 2018
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