GWLC commissioned an additional 12.5 MW solar plant during FY25

Gharibwal Cement Limited held an analyst briefing, according to a report by AHL Research, summarizing the presentation outcomes and responses to questions.

GWLC management held an analyst briefing today to discuss FY25 financial performance and the outlook.
Gharibwal Cement Limited (GWLC) reported profitability of PKR 19.6bn (EPS: PKR 4.4) in FY25, compared to PKR 18.2bn (EPS: PKR 5.5) in FY24. The company also announced a final cash dividend of PKR 1.00/share, versus no payout in the preceding year.
Cement dispatches during FY25 stood at 1.22mn tons, registering a 2.3% YoY growth against 1.19mn tons in FY24. The average net selling rate improved by 6% YoY to PKR 16,078/ton, while the current month (Oct’25) rate stands around PKR 15,050/ton, reflecting seasonal moderation.
The company’s fuel mix included both local and imported coal (South African/Afghan), with the average coal cost for FY25 at PKR 34,000–35,000/ton (on NCV basis). Local coal is currently priced near PKR 24,000/ton, while South African coal remains below USD 100/ton.
The average power cost during FY25 was ~PKR 20/unit (excluding the fuel component). Combined WHR + CFB cost averaged ~PKR 16/unit, while CFB-only cost was ~PKR 28/unit. The average grid tariff declined to PKR 38/unit (Jul–Sep’25) from ~PKR 50/unit in FY25, driving meaningful savings in total power costs.
During FY25, GWLC commissioned an additional 12.5 MW solar plant, taking its total solar capacity to 24.5 MW. The company expects to generate ~30mn units of solar power annually, accounting for ~25% of its total energy requirements. The power mix now stands at ~50% Waste Heat Recovery (WHR), ~25% solar, and ~25% grid, substantially reducing exposure to grid tariff fluctuations.
Operational performance improved further through a cooler retrofit and process optimization, enhancing kiln efficiency and reducing specific heat consumption to below 700 kcal/kg. The power requirement per ton remains under 100 kWh, underscoring the company’s strong operational control.
The Line-II expansion project continues as planned, with execution pace to be aligned with dispatch growth and market demand. Given that significant civil works and equipment imports have already been completed, the project capex will be substantially lower than a new greenfield setup. The carrying value of Line-I stands at PKR 760–770mn.
Cement bag prices currently range from PKR 1,350 to 1,400/bag. Management anticipates FY26 margins to remain stable, supported by lower energy costs, enhanced operational efficiency, and clinker inventory utilization (~300,000 tons). Dispatch growth for FY26 is expected between 6–10% YoY, in line with industry trends.
Dividend declaration remains subject to Board approval, with management noting that the company typically announces payouts in years of cash surplus and healthy liquidity.

AHL Research