Pioneer Cement : Transmission of Quarterly Report for period ended 31 March 2024

CONTENTS

2	Company
	Information
3	Directors'
	Report
5
8	Condensed Interim
	Statement of
	Financial Position
9	Condensed Interim
	Statement
	of Profit or Loss
10	Condensed Interim
	Statement of
	Comprehensive
	Income
11	Condensed Interim
	Statement of
	Changes in Equity
12	Condensed Interim
	Statement of
	Cash Flows
13	Notes to the
	Condensed
	Interim Financial
	Statements

PIONEER CEMENT LIMITED	1

COMPANY INFORMATION

Board of Directors

Mr. Aly Khan (Chairman)

Mr. M. Habibullah Khan (CEO)

Ms. Aleeya Hasan Khan

Mr. Shafiuddin Ghani Khan

Mr. Mohammed Aftab Alam

Mirza Ali Hasan Askari

Mr. Manzoor Ahmed

Mr. Doraib A Kisat

Audit Committee

Mr. Manzoor Ahmed (Chairman)

Mr. Aly Khan

Ms. Aleeya Hasan Khan

Mr. Shafiuddin Ghani Khan

Mr. Mohammed Aftab Alam

HR & Remuneration Committee

Mr. Shafiuddin Ghani Khan (Chairman)

Mr. M. Habibullah Khan (CEO)

Mr. Aly Khan

Ms. Aleeya Hasan Khan

Mr. Mohammed Aftab Alam

Chief Financial Officer

Mr. Waqar Naeem

Chief Internal Auditor

Mr. Jan Muhammad

Company Secretary

Mr. Talha Saif

Bankers

Allied Bank Limited

Askari Bank Limited

Bank Al Habib Limited

BankIslami Pakistan

Dubai Islamic Bank

First Credit and Investment Bank

Habib Bank Limited

JS Bank Limited

Meezan Bank Limited

MCB Bank Limited

National Bank of Pakistan

Samba Bank

The Bank of Khyber

The Bank of Punjab

United Bank Limited

Statutory Auditors

KPMG Taseer Hadi & Co.

Chartered Accountants

Legal Advisor

Hassan & Hassan

Share Registrar Corplink (Pvt) Limited Wings Arcade, 1-KCommercial, Model Town, Lahore

Tel: [phone]

Fax: [phone]

Email: [e-mail] [e-mail]

Registered Office

64-B/1,Gulberg-III, Lahore, Pakistan. Tel: [phone]

Fax: [phone]

Email: [e-mail]

Factory

Chenki, District Khushab

Tel: [phone]

Fax: [phone]

Email: [e-mail]

Regional Offices

Karachi Office

F-54 Block 7, Clifton, Karachi Tel: [phone]

Email: [e-mail]

Multan Office

House No. 218, Naqshband Colony

Khanewal Road, Multan

Tel: [phone]

Fax: [phone]

Faisalabad Office

Office No. 5, 3rd Floor, Sitara Tower, Bilal Chowk, New Civil Lines, Faisalabad Tel: [phone] Fax: [phone]

2		PIONEER CEMENT LIMITED

DIRECTORS' REPORT

TO THE SHAREHOLDERS

In the name of Allah, the most Gracious, the most Merciful.

The Directors of your Company are pleased to present the condensed interim financial statements for the period ended March 31, 2024.

Cement Industry

During the period under review, the cement industry made volumetric dispatches of

1. million tons compared to 33.60 million tons dispatched during the same period last year (SPLY), recording 2.69% growth. Dispatches for the period comprised of 29.40 million tons of local sales (SPLY: 30.56 million tons) and 5.10 million tons of exports (SPLY:

1. million tons).

Business Performance
1) Production and Sales Volume			(Tons)
	Period ended March 31,	Variance
	2024	2023	%
Cement production	1,819,530	2,109,554	(13.75)
Cement sales	1,834,863	2,090,501	(12.23)
2) Financial Performance
		(Rupees in thousands)
	Period ended March 31,	Variance
	2024	2023	%
Net sales	27,374,927	27,796,065	(1.52)
Cost of sales	18,492,334	20,614,269	(10.29)
Gross profit	8,882,593	7,181,796	23.68
Operating profit	8,169,471	6,611,161	23.57
Profit before taxation	6,275,572	3,996,436	57.03
Profit after taxation	3,828,099	2,711,230	41.19
Earnings per share (Rs.)	16.85	11.94	41.12

Despite 12.23% decline in sales volumes, the Company's topline witnessed a marginal reduction primarily attributable to improvement in net sales per ton, rising to Rs. 14,919 (SPLY: Rs. 13,296).

The cost of cement sold during the period after a slight uptick stood at Rs. 10,078 per ton (SPLY: Rs. 9,862 per ton). The rise in raw material costs to Rs. 865 per ton (SPLY: Rs. 641 per ton) was due to an increase in provincial charge on account of royalty on mineral extraction. In anticipation of increase in craft paper prices, the Company has proactively improved its poly to paper mix, which has limited the rise in packing costs to Rs. 797 per ton of cement sold (SPLY: Rs. 738 per ton). Revaluation of property, plant and equipment has also increased the total depreciation charge per ton to Rs. 1,177 per ton (SPLY: Rs. 953 per ton).

During the period under review, Rs. 2,031 million early loan settlements in addition to regular repayment of financing liabilities have effectively mitigated the impact of elevated policy rates.

PIONEER CEMENT LIMITED	3

Taxation encompasses charges related to alternate corporate tax, deferred tax and provisions for super tax during the period. This has led to net profit after tax of Rs.

3,828.10 million for the period (EPS: Rs. 16.85), compared to Rs. 2,711.23 million (EPS: Rs. 11.94) earned in the corresponding period.

Future Outlook

Following the recent general elections, the hopes for stability in Pakistan are increasingly fading courtesy of ongoing geopolitical conflicts which impedes efforts to stabilize prices and economy. Resultantly the management anticipates that the industry will continue to face significant challenges, such as rising raw material expenses, relentless rise in national grid tariffs, volatile foreign exchange rates, current levels of policy rate and limited government development expenditure.

However, the managment remains optimistic that by achieving operational efficiencies it will be able to pass through these testing times and will continue to add more value to its shareholders.

Acknowledgement

The Board acknowledges the role played by all stakeholders including customers, financial institutions, government departments and employees in the continued growth of the Company.

For and on behalf of the Board

M Habibullah Khan	Aly Khan
Chief Executive Officer	Chairman
April 26, 2024	April 26, 2024
Lahore

4		PIONEER CEMENT LIMITED

PIONEER CEMENT LIMITED	5

6		PIONEER CEMENT LIMITED

Condensed

Interim Financial

Statements

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2024

Rupees in thousands		March 31,	June 30,
	Note	2024	2023
	Un-audited	Audited
ASSETS
Non Current Assets	6	76,636,128	77,802,602
Property, plant and equipment
Investment property		701,175	94,926
Long-term advances and deposits		85,049	344,264
		77,422,352	78,241,792
Current Assets		3,979,700	4,435,649
Stores, spares and loose tools	7
Stock-in-trade	1,805,924	1,631,574
Trade receivables		2,118,902	1,825,648
Loans and advances		248,884	199,627
Short-term prepayments		14,366	6,027
Other receivables	8	15,472	9,952
Short-term investments	100,000	461,502
Cash and bank balances		661,302	343,596
		8,944,550	8,913,575
TOTAL ASSETS		86,366,902	87,155,367
EQUITY AND LIABILITIES
Share Capital And Reserves		3,500,000	3,500,000
Authorized share capital
Issued, subscribed and paid up share capital		2,271,489	2,271,489
Capital reserves		197,517	197,517
Share premium
Surplus on revaluation of property, plant and		23,617,006	23,599,990
equipment - net of tax
Revenue reserve - unappropriated profit		23,814,523	23,797,507
	18,239,558	14,452,447
		44,325,570	40,521,443
LIABILITIES
Non Current Liabilities	9	5,300,297	8,033,010
Long-term financing
Long-term deposits		43,859	41,384
Deferred liabilities		21,173,486	19,681,537
		26,517,642	27,755,931
Current Liabilities	10	6,618,814	7,019,560
Trade and other payables
Retention money payable		76,669	843,944
Provision for taxation - net		999,525	411,796
Contract liabilities		125,869	129,269
Sales tax payable - net	11	238,238	10,094
Accrued mark-up / profit on financing	630,748	952,532
Short-term borrowings	12	2,553,489	3,961,845
Current portion of long-term financing	9	4,033,415	5,488,369
Unclaimed dividend		246,923	60,584
		15,523,690	18,877,993
Contingencies And Commitments	13	42,041,332	46,633,924
-	-
TOTAL EQUITY AND LIABILITIES		86,366,902	87,155,367

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Chairman

8		PIONEER CEMENT LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2024

Rupees in thousands			Nine Months Ended	Quarter Ended
			March 31,	March 31,
	Note	2024	2023	2024	2023
Revenue from contracts
with customers - gross			37,967,414	37,585,019	11,869,940	12,503,258
Sales tax			(6,600,509)	(6,225,895)	(2,089,513)	(2,096,093)
Federal excise duty			(3,669,726)	(3,258,552)	(1,129,014)	(1,137,364)
Commission			(275,961)	(239,546)	(86,600)	(87,920)
Discount and rebate			(46,291)	(64,961)	(14,729)	(32,020)
		(10,592,487)	(9,788,954)	(3,319,856)	(3,353,397)
Revenue from contracts
with customers - net			27,374,927	27,796,065	8,550,084	9,149,861
Cost of sales	14	(18,492,334)	(20,614,269)	(5,810,102)	(6,689,217)
Gross profit			8,882,593	7,181,796	2,739,982	2,460,644
Distribution cost			(144,350)	(93,685)	(33,963)	(32,088)
Administrative expenses			(215,947)	(118,470)	(54,005)	(38,676)
Other expenses			(352,825)	(358,480)	(98,461)	(117,128)
			(713,122)	(570,635)	(186,429)	(187,892)
Operating profit			8,169,471	6,611,161	2,553,553	2,272,752
Other income			171,387	37,866	54,286	20,943
Gain / (loss) on assets			190,659		(4)
held at fair value			(17,600)	(8,511)
Finance costs			(2,255,945)	(2,634,991)	(680,212)	(867,329)
			(1,893,899)	(2,614,725)	(625,930)	(854,897)
Profit before taxation			6,275,572	3,996,436	1,927,623	1,417,855
Taxation			(2,447,473)	(1,285,206)	(725,279)	(467,892)
Profit after taxation			3,828,099	2,711,230	1,202,344	949,963
Earnings per share
- basic and diluted (Rs.)		16.85	11.94	5.29	4.18

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Chairman

PIONEER CEMENT LIMITED	9