Nine months in to the fiscal, the top line growth for Pakistan’s Attock Cement (ACPL) continues to mimic the trend of growth in industry dispatches. Albeit lower than the rate of growth in 1HFY15, the company’s top line managed to grow by 6.8% in 3QFY15 compared to the similar period of the previous fiscal.
More importantly, the company continued to make inroads in international markets, especially East Africa, South Africa and Sri Lanka. It has also displayed an encouraging trend of slower growth in the associated cost of production which grew by less than one percent over the same period last year. Distribution costs were up by a significant 38.4% percent in 3QFY15, when compared to 3QFY14.
The raked up distribution cost should also be considered in light of the company’s ability to continue boosting sales abroad in an industry that has seen cumulative exports plunge. There are prospects of higher domestic demand from government and the private sector, as well as the establishment of a subsidiary in Iraq. It should attain further control over production costs with the establishment of a 40-MW captive power plant, expected to be operational by FY18.
