PACRA maintains Entity Ratings of Flying Cement Company Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 17, 2021 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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Flying cement operates with one manufacturing unit, having capacity of 1.2mln tpa, in the North region. In 1HFY21, the Company picked up pace and recover its losses to report profits that also in line with the cement industry trend. Flying Cement announced cement capacity expansion plan in FY16 but delayed it due to a number of announced capacities and unfavourable economic conditions. Cement sector announced third phase of expansion (~18 mln tpa) which is expected to increase with more players join the lane. Therefore, Flying Cement is also in process to complete its previously announced capacity to almost double its existing capacity of Line-I and brownfield expansion of Line-II (7,700tpd-Clinker).

Furthermore, remarkable growth in local demand, curtailed policy rates and better cement prices giving the required supporting environment to flourish. Local capacity utilization already recorded growth to 85% in 1HFY21 (1HFY20: 65%). This depicts the sector's resilience to the bumpy ride of FY20 and impacts amid country wide lock down observed due to COVID-19 outbreak. Though construction sector began operations and high demand from private sector has been seen. During 1HFY21, Flying Cement recorded profits of PKR 89mln attributable to augmented supply side and better cement prices. Hence, margins took steep rise. The Company had completed WHRPP which is expected to...