⚡ Flash Summary
Pioneer Cement’s FY2025 presentation reveals a mixed performance. While gross turnover increased to Rs. 50.86 billion, up 3.3% from FY2024, net turnover decreased by 6.2%. Profitability metrics such as gross profit and profit after tax also experienced declines. The company has settled its syndicated financing early and declared a dividend of Rs. 10 per share.
📌 Key Takeaways
- 1. 🏭 Production capacity: 5.2 million tons of cement annually.
- 2. ⚡ Captive power generation: 48MW (18MW WHR & 30MW Coal).
- 3. 💰 Market Capitalization: Rs. 51.82 billion (US$ 182.77 million).
- 4. 🏦 Total Assets: Rs. 86.37 billion (US$ 310.63 million).
- 5. 📈 Annual gross turnover: Rs. 50.86 billion (US$ 179.38 million).
- 6. 👨💼 Team: More than 1,100 employees.
- 7. 🤝 Dealers Network: Over 300 dealers.
- 8. ➗ Quantity Sold decreased by 12.28% from 2,362,216 tons to 2,072,233 tons.
- 9. 💸 Gross Turnover increased by 3.30% from Rs. 49,235.02 million to Rs. 50,858.11 million.
- 10. 📉 Net Turnover decreased by 6.22% from Rs. 35,519.27 million to Rs. 33,308.61 million.
- 11. 🔻 Gross profit decreased by 11.22% from Rs. 11,763.26 million to Rs. 10,443.52 million.
- 12. 📉 Profit after tax decreased by 5.80% from Rs. 5,176.17 million to Rs. 4,876.10 million.
- 13. 💸 Dividend of Rs. 10 per share declared for FY2025.
- 14. ♻️ Focus on eco-friendly practices and initiatives to reduce carbon footprint, supported by ISO certifications.
- 15. 📊 Current ratio increased to 0.88 in FY25 compared to 0.55 in FY24.
🎯 Investment Thesis
Based on the mixed financial performance, a HOLD recommendation is appropriate. The increase in revenue is a positive sign, but declining profitability and a high cost of sales are concerning. Further monitoring of the company’s performance is warranted before making a BUY or SELL decision. The company has settled its syndicated financing early which demonstrates good financial management.
Disclaimer: AI-generated analysis. Not financial advice.