Shams ul Nisa

The Cherat Cement Company Limited is well-positioned to leverage Pakistan’s economic recovery, supported by lower interest rates, easing inflation, and a stable exchange rate, reports WealthPk. During the nine months of fiscal year 2025, Pakistan’s macroeconomic landscape has improved, driven by easing inflation, stable prices, strong agricultural output, and declining global commodity costs all supported by IMF-led reforms and a lower policy rate.

As a result, the outlook for infrastructure, housing investment and private sector confidence is strengthening. Therefore, the government plans to ramp up development spending to further energize the sector.

However, despite a dip in domestic demand in the cement sector, Cherat Cement demonstrated resilience with a strong export performance and strategic cost-cutting, including a 13% drop in sales costs and a sharp reduction in finance expenses due to early debt repayments and better liquidity.

Although overall sales volume dropped by 11.5%, the company offset losses through a 27.1% surge in exports, driven by increased sea-based shipments and steady Afghan demand. Moreover, strategic cost control and process efficiency led to a 13% reduction in cost of sales, helping limit the revenue decline to just 3%. Therefore, the company reported a profit after tax of Rs6.833 billion in 9MFY25.

Cherat Cement is actively tackling rising energy costs through strategic investments in renewable energy and operational efficiency. A major step includes the commissioning of a 6MW solar power plant, with an additional 3MW set to launch by the end of the financial year.

The company is also optimizing its fuel mix by replacing costly gas with more affordable alternatives. These initiatives reflect Cherat’s long-term commitment to sustainability, resilience, and value creation amid evolving market conditions.

Cherat Cement is playing a vital role in Pakistan’s economic recovery by capitalizing on easing inflation and lower interest rates to fuel growth in infrastructure and housing. The company’s commitment to innovation, sustainability, and efficiency supports job creation and positions it as a key contributor to the country’s long-term economic development.

Credit: INP-WealthPk