CHAIRMAN’S REVIEW
The country has emerged from a global pandemic, characterised by constant change and uncertainty. Global commodity prices particularly energy and fuel, witnessed significant fluctuations due to changes in demand and supply. As a result, the world economy is possibly facing a recession. Apart from these challenges, Pakistan is also affected high inflation, depleting foreign exchange reserves, and political instability. The Government has had to implement harsh fiscal and monetary measures in an effort to resume the IMF program. These circumstances have adversely affected the demand for cement in the country. On aggregate, cement sales declined by 16% during the year. Local and export sales went down by 16% and 13%, respectively. However, there is some improvement in exports to Afghanistan which increased by 17% during the year. Despite all these challenges, your Company managed to record an after-tax profit of Rs.4,403 million through operational efficiencies. The coming year appears to be challenging but the business community is hopeful of some economic recovery on the back of the IMF programme.
BMR work on cement Line 1 has been completed successfully. The commissioning of WHR on Wartsila Dual Fuel (WDF) engines has also been completed after installation of a new turbine during the year. These projects will help in bringing about further efficiency in our processes.
The Company remains committed to best sustainability practices. We are taking all the measures to protect the environment and serve the community we belong to. Over the years, we are investing heavily in renewable energy projects like Waste Heat recovery (WHR), Solar panels installation, LED lights and WHR on WDF engines etc. These projects have not only helped us in reducing the carbon footprint but have also resulted in reduction in cost of production. We have significantly increased plantation at our manufacturing facility. We are also working for protection of wildlife. We have taken many measures to improve the health and safety practices in our organization. As a responsible corporate, we are continuously contributing towards the social uplift of our nearby areas. Our priority is education, health, drinking water and women empowerment and different projects are in place to achieve these goals. We have also helped the flood affected during the year and supported their rehabilitation process. We believe that all these efforts will bring a positive change in the society which eventually is beneficial for the Company and the country.
I am pleased to report that the Board of Directors has performed its duties and responsibilities meticulously and has contributed towards guiding the Company in its strategic affairs. It focused on major risk areas and remained actively involved in the strategic planning process of the Company. The Board recognises that well defined corporate governance processes are important to preserve and enhance stakeholders’ value. All Directors including Independent Directors, fully participated and contributed to the decision-making process of the Board. The Board carried out its annual self-evaluation in line with the requirements of Code of Corporate Governance.
I would like to take this opportunity to extend my appreciation to the staff, customers, suppliers, bankers. Board of Directors, and shareholders for their continued support, commitment and hard work.
Omar Faruque
Chairman