CHCC has reported standalone earnings per share of PKR 44.68 in FY25 (FY24: PKR 28.31). Furthermore, in 1QFY26 the company reported EPS of PKR 10.79 (1QFY25: PKR 14.81). Total capacity is approximately 4.5 million tons across three lines (Line 1, Line 2, Line 3) located in Nowshera, KPK. Line 3 runs almost throughout the year, but Line 2 runs partially due to low demand.
Overall effective utilization levels might be higher than nominal capacity suggests, as older lines’ effective capacity comes down. The company is planning its power mix to address the significant increase in gas rates and the imposition of levies on furnace oil. Power obtained via PEDO special wheeling arrangement is priced around 1.5 per unit. 9 megawatts (MW) of solar capacity were added, coming into full operation during the last quarter of FY25. Total solar capacity is now 24 MW. The aggregate renewable capacity is 45 MW.
Waste Heat Recovery (WHR) is installed on all three cement lines and on PG generators. Due to increased gas tariffs and levies, gas generation became unviable. The company switched to furnace oil generation from March onwards, but subsequent levies on furnace oil necessitated a switch to grid now. Timely fuel buying and overall plant efficiencies contributed to a fuel cost saving of more than 600 rupees per ton. Petcoke now comprises about 9% of the fuel cost.
The maximum sustainable mix is 30%, provided it is an economically viable purchase. Electrical dumpers were ordered for use in the quarry during FY25. They have now arrived and are operational subsequent to the September quarter. The company is hopeful this will add efficiency and is looking to add more such equipment.
Industry local dispatches dropped 4%, while Cherat Cement saw a 10% drop. Industry exports (Afghanistan and sea) were up 30%, but Cherat Cement’s exports were down 30%. While showing positive signs, exports are hampered by border issues; the border was closed for four to five months last year and for more than a month just after September 2025.
Going forward, management anticipates maximum local demand growth for the full year in the range of 5% to 7%. The high 22% growth seen in the first four months is partially attributable to the low base effect from last year due to dealer strikes/tax issues. The management is aware of the need to expand and possesses available space in both its existing location and in Dera Ismail Khan.
Any decision will be based on maintaining sanity regarding local and long-term view. The Cost and Freight (CFR) delivered at Karachi port, including duties and charges, is around USD 98–100. Inland freight cost varies based on the distance to the plant. Prices in the North are currently below prices in the South, but management is hopeful for long-term improvement.
Important Disclosures
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