Summary Sales increased by 4% to 8.9 mn tons in 4QFY13 as against 8.6 mn tons in the previous quarter.
ISLAMABAD (Online) - Cement sales increased by 4 percent to 8.9 mn tons in 4QFY13 as against 8.6 mn tons in the previous quarter.
Although in 4QFY13 local sales remained stagnant growing by mere 1% to 6.7mn tons vs. 6.6mn tons in the previous quarter, exports growth of 13% to 2.2mn tons pushed the total sales up.
Industry sources told online that sales growth coupled with margin expansion (due to declining costs) is likely to augment sector’s profit by 5-6% while improved other income (in form of dividends from investments) for LUCK and DGKC will boost sector’s profitability by another 5-6%.
Thus, cumulatively, 4QFY13 profits of cement sector are likely grow by 10-12%. This coupled with one time dividend payout (majority of cement companies pay full and final dividend at the end of the fiscal year) is likely command investors attention in the sector.
