The second day of the Pakistani Cement Conference 2025 was opened with a session on the Coat Cement, where the financial manager, Khuram Shahzad, detailed the company’s efforts to improve energy efficiency and put it in the long -term expansion, and a report from the Topline securities indicates at the conference.
Kohat Center has recently completed the installation of a 15.4 -megawatt solar factory, with plans to increase the total solar energy capacity to 20 megawatts. The coal -powered power plant with a capacity of 30 megawatts is also under development, is expected to operate by the end of the fiscal year 2026. The company’s estimates indicate that this will lead to a decrease in electricity costs by 4 to 5 rupees per unit.
Shahzad also submitted updates to the company’s Greenfield expansion in Khushab, where infrastructure works are conducted. However, the final requests of the factory and machines were postponed until a clearer recovery is achieved in the demand for local cement. Kohat Center has allocated up to 20 billion rupees for the cost of the project, and has already spent 4.7 billion rupees on the re -purchase of shares, recently completed. About 2-3 billion rupees are allocated to the new power plant.
While the additional purchases outside the table at the present time due to the organizational borders, Shahzad said that the board of directors may re -evaluate next year. On profits, no fixed policy has been indicated, while decisions remain at the council level.
In operational aspect, the company has improved its power mix, using more captive energy and local coal compared to last year. As a result, production costs decreased from 105353 rupees to 923 rupees per ton, while the average selling prices increased from about 14,900 rupees to 16,300 rupees per ton. The margins improved accordingly, increasing from about 28 % to approximately 42 %. Shahzad added that Cuhat does not have immediate plans to insert biofuels and focuses on increasing the use of local coal.
He also pointed to the uncertainty. Royal rights are not implemented on cement bags yet, but it is expected to be included in the upcoming federal budget. The court ruling in Punjab can affect the laws of kings on decisions similar to plants in Khyber Bakhtongua, where it works.
Camran Moner Ansari, CEO of that company, closed the second day of the Pakistani Cement Conference at Topine Securities 2025 by identifying a double growth strategy, improving the energy mix, and diversification plans that greatly raised the company’s financial performance.
That Coment evaluates two main options to expand the capacity. One is a 5000 tons cement project/day Greenfield through a joint project with a Chinese partner. The company signed the Memorandum of Understanding, with the provision of due care. The estimated cost of the project is $ 100 million, and it has been funded by 50 % of the debts, as that has a 51 % share of shares and Chinese partner 49 %.
As an alternative, the company is considering obtaining a 51 % stake in a listed cement company, with the value of a deal of about 21 billion rupees.
In the diversification effort, that captured 150 -trails from Minsk (berus) through a fully owned subsidiary. About 4-5 units have been sold in the third quarter of 2025, with the expectation that the rest is expected by the fourth quarter of 2025. The local assembly agreement is completed to support the long-term entry to the agricultural equipment sector.
That CEMENT achieved a strong recovery in the total margins, which improved from only 7-8 % in the fiscal year 23 to 28-29 % in the first nine months of the fiscal year 25. This improvement is due to the full dependence of local coal on Lakhra, at a cost of 1.800-14,000 rupees per ton, and a mixture of diverse internal energy via that of that Power, the subsidiary company she has.
Thata Power depends on a prisoner of 9.9 megawatts, 5 megawatts of solar energy, 4.8 MW of wind, and 3 megawatts of waste temperature. Energy is sold with a bonus ranging from 14 and 15 rupees per unit on the prices of the prevailing network from 36 to 37 rupees per unit, which makes sub -payments profitable and enable profit distributions for the mother company.
Ansari pointed out that the company has not yet paid 791 million rupees to develop gas infrastructure and explore legal options in line with other sector players.
He expected that the sales of local cement will remain flat in the fiscal year 25, with the expected to recover the market by 10-12 % in the 26th fiscal year, driven by low interest rates and the development of the public sector. That CEMET expects profit growth from 50 to 55 % in the fiscal year 25 and 20 to 25 % in the 26th fiscal year.
