Shams ul Nisa

Thatta Cement Company Limited (THCCL) has marked a significant milestone in operational efficiency and profitability by fully transitioning to locally sourced coal, reports WealthPK.

As a result of the ongoing investments in renewable energy and transition to locally sourced coal, the company has lowered production costs, boosted profit margins, and strengthened its position as a frontrunner in sustainable manufacturing.

Therefore, the company closed the period with enhanced liquidity and financial resilience, strengthened by an improved working capital cycle, reduced short-term debt, and no long-term borrowings.

The key factor behind Thatta Cement’s improved financial results for the nine months ending March 31, 2025, is its strategic shift to lower-cost domestic coal. This transition led to a decline in the company’s cost-to-sales ratio to 71.08%, compared to 72.22% in the same period last year.

The company’s emphasis on cost control and strategic market positioning delivered strong financial gains. Although local cement dispatches declined by 4.60% to 369,944 tons, the company recorded a 3.76% increase in sales revenue, driven by higher retention prices and effective market strategies.

Moreover, the company has taken a major step toward sustainability with the successful commissioning of a 4.8MW wind power project and a 5MW solar plant. These renewable energy initiatives are set to reduce reliance on the national grid, cut energy costs, and strengthen the company’s environmental commitment.

Thatta Cement’s strategic initiatives are making a meaningful impact beyond the company itself, offering valuable contributions to both the cement industry and the broader economy.

THCCL is supporting local mining operations and reducing dependence on imported fuel, helping retain capital in the country by switching to domestic coal. Its renewable energy projects are also driving local economic activity and job creation while setting a strong example for sustainable industrial practices.

Looking forward, the company maintains a positive outlook on Pakistan’s economic prospects, and intends to expand its renewable energy footprint, with plans for further investment in solar and wind projects aimed at reducing grid reliance by up to 50% in near future.

Therefore, the company is well-positioned to seize new growth opportunities while contributing to the country’s broader economic goals with a strategic focus on innovation, cost efficiency, and sustainable resource utilization.

Thatta Cement’s shift to domestic coal and its strong push into renewable energy have reshaped the company’s cost dynamics, improved profitability, and enhanced resource efficiency. The company sets a leading example of sustainable progress in the country’s industrial landscape with continued investment and innovation.

Credit: INP-WealthPk