CHAIRMAN’S REVIEW
During the year under review, Pakistan’s economy experienced subdued growth. The services sector re-mained the primary contributor, while the industrial sector continued to face challenges. Macroeconomic stability was improved with fiscal consolidation due to improved external account position. Encouragingly, the reduction in policy rates by the State Bank of Pakistan during the year helped in restoring investor confidence upto some extent. The cement sector reflected broader economic trends. Local demand re-mained under pressure. Export markets witnessed encouraging signs although Afghanistan market which is relevant in our case, remained affected due to border closures for few months. Rising energy costs, with high levies and taxes, added pressure to operating margins.
Total sales volume of the Company declined by 9% as against of last year. Domestic and export sales declined by 10% and 3% respectively. Despite lower volumes, the Company delivered its highest ever profit after tax of Rs. 8,681 million for the year ended June 30, 2025, as compared to Rs. 5,500 million last year, driven by improved operational efficiencies, effective cost management and an optimized sales mix. To mitigate escalating power costs and strengthen energy security, the Company commissioned an additional 9 MW of solar based generation capacity during the year. The company continues to strengthen its
competitive edge because of its constant commitment to operational excellence, careful cash flow management, and cost leadership. In order to achieve long-term, sustainable growth, we have made diversity, innovation, and cost optimization our top strategic priorities.
The Board of Directors remained actively engaged in shaping long-term strategy and overseeing risk management. A strategy session was held to review market dynamics, diversification opportunities, and sustainability initiatives. The Board also conducted its annual self-evaluation in accordance with the Code of Corporate Governance, reaffirming its commitment to high governance standards, transparency, and accountability. Prudent cash flow management, operational excellence, and cost leadership remain central to our strategy, enabling us to retain a competitive edge in a challenging market.
During the year, we advanced our renewable energy initiatives, alternate fuel utilization, and strengthened dust emission controls. Large-scale tree plantation campaigns were undertaken to improve air quality and restore ecological balance.
Our social responsibility programs focused on education, healthcare, and community development, building trust with stakeholders and enhancing social impact. The Company has also progressed to its ESG journey by curtailing carbon emissions and improving sustainability reporting in line with the best global practices.
Our economic stabilization measures will lead to gradual recovery, however, challenges such as low domestic demand, high energy costs, and regulatory levies pressures will persist in the short term. We are optimistic about capturing growth opportunities as domestic demand recovers and Afghan export grows.
I extend my sincere appreciation to our employees for their dedication, to our customers and suppliers for their loyalty, and to our bankers, shareholders, and regulatory authorities for their continued trust and support. I also thank my fellow Board members for their valuable guidance and oversight.
With our resilient business model, committed workforce, and forward-looking strategy, your Company is well positioned to create sustainable value for all stakeholders in the years ahead.
Omar Faruque
Chairman