Pioneer Cement profit drops 16% in Q42025
Pioneer Cement Limited (PIOC) has reported a 16 percent year-on-year drop in its fourth-quarter fiscal year 2025 (4QFY25) earnings. It posted a profit of Rs1.1 billion, or earnings per share (EPS) of Rs4.97, compared to Rs1.3 billion (EPS Rs5.90) in the same period last year.
Pioneer Cement Limited (PIOC) announced its 4QFY25 results on Friday, wherein the company posted net earnings of Rs1.1bn (EPS Rs4.97) as compared to Rs1.3bn (EPS Rs5.9) during the same period last year, down by 16%YoY. Power cement increases Cement price by Rs300 per ton
The result came lower than our estimate, mainly due to lower-than-expected gross margin and higher effective taxation. ▪ Along with the result, the company announced final cash dividend of Rs5/share, taking the cumulative dividend to Rs10/share in FY25
During 4QFY25, PIOC’s topline clocked in at Rs8.6bn (up 6%YoY) mainly due to a rise in retention prices. PIOC’s gross margin clocked in at 27% as compared to 35% during the same period last year.
We believe that the sharp decline is mainly attributed to lower capacity utilization during the period. ▪ Finance cost reduced by 49% to Rs282mn in 4QFY25 mainly due to lower financing rates and borrowing,” Sherman Research said.
On a sequential basis, we believe earnings improved by 16%QoQ mainly due to better retention prices and the incorporation of higher royalty expense in the last quarter.
Cumulatively during FY25, the company’s net earnings declined by 6%YoY mainly due to lower volumetric sales (down 12%YoY) and higher operating expenses (up 31%YoY).
