Attock Cement (ACPL) gears up for mixed 4QFY25 results

Attock Cement Pakistan Limited (ACPL) is set to announce its earnings for the final quarter of FY25, and there’s a mix of positives and challenges in the picture.

Earnings drop despite strong sales

ACPL is expected to report net profit of PKR 590 million in 4QFY25, which is down 11% compared to last quarter and 56% lower than the same period last year. This would translate to an Earnings Per Share (EPS) of PKR 4.3 for the quarter.

So, why the drop in earnings?

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Domestic sales weak, exports to the rescue

The company’s total sales for the quarter are estimated at PKR 8.2 billion, slightly lower than the previous quarter. The key reason? A 21% decline in local cement dispatches due to weak demand in the South region of Pakistan.

However, ACPL managed to cushion the impact thanks to a strong boost in exports, which jumped over 100% compared to the last quarter. This shows the company’s export strategy is working, at least for now.

Future export outlook may be uncertain

While exports helped this quarter, ACPL might face pressure going forward. Changes in U.S. trade policy and possible tariff hikes could hurt global cement exports, and ACPL is not immune to that risk.

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Margins and dividend

Gross margins are expected to remain steady at around 25%, but finance costs have gone up sharply compared to last year, mainly due to higher debt. On a positive note, other income increased significantly, helping support the bottom line.

ACPL is also expected to declare a cash dividend of PKR 3.0 per share, which brings total FY25 payout to PKR 3.0, down from PKR 6.5 last year.

Investor takeaway

• ACPL’s exports are the key driver right now, but future trade risks must be watched.
• Margins are stable, but higher finance costs are squeezing profitability.
• A dividend is still on the table, but overall FY25 earnings are lower than last year.

With sales pressure at home and potential headwinds abroad, investors should keep a close eye on regional demand and global trade trends before making any decisions.

Source: Taurus Securities Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →