LAHORE: The cement sector posted a core cement operation loss of Rs 20.4 billion in financial year 2019-2020, claimed sources in the cement industry.

The profitability of the cement sector has been completely reversed as the industry has posted core cement operation loss of over Rs 20.4 billion in this financial year whereas it earned profit of Rs 26.5 billion in 2018-2019.

Sources told Business Recorder that out of 15 units that have reported their annual results, 13 units faced complete loss this year despite increase in the consumption of cement across the country.

The core cement operation losses of the units without other income included Bestway Cement Limited which posted a loss of Rs 1.869 billion in 2020, Cherat Cement Limited loss stood at Rs 1.963 billion, Dewan Cement Limited loss in 2020 was Rs 1.327 billion, DG Khan Cement Limited showed Rs 4.588 billion loss, Fauji Cement Limited posted loss of Rs 144 million, Fecto Cement Limited posted loss of Rs 816 million, Flying Cement Limited posted loss of Rs 626 million, Gharibwal Cement Limited posted loss of Rs 236 million, Kohat Cement Limited posted loss of Rs 640 million, Maple Leaf Cement Limited posted loss of Rs 4.975 billion, Pioneer Cement Limited posted loss of Rs 317 million, Power Cement Limited posted loss of Rs 3.706 billion and Thatta Cement Limited posted loss of Rs 203 million.

Attock Cement Pakistan Limited and Lucky Cement Limited earned profits.

The cement industry has made huge investments to enhance capacity and modernize the production over the last few years to meet the demand in the country. The cement production capacity of the country is around 71 million tons and surplus of around 18 million tons can be exported, earning valuable foreign exchange with a little incentive from the government, the sources concluded.

Copyright Business Recorder, 2020