Analysis of Financial Statements of top 5 Pakistan's Cement Companies

1. Financial Analysis
Submitted by:
Rehan Ahmed (BB-28011)
Azeem Siddiqui (BB-

3. INTRODUCTION
The journey of Attock Cement started from the year 1981 and the company started its commercial production in
1988. in 25 years, company has shown steady growth. ACPL has attained new peaks every year through
strong team work, continuous modernization of plant to improve efficiency and with utmost hard work. ACPL
has cemented its place not only in the local market but also in the regional markets through selling quality
products.
VISION
To be the leading organization continuously providing high quality cement, excelling in every aspect of its
business and to remain market leader in cement industry.
MISSION
To be a premier and reputable cement manufacturing company dedicated to become an industry leader by
producing quality products, providing excellent services, enhancing customer satisfaction and maximizing
shareholders' value through professionalism and dedicated team work.

4. Attock Cement - Profitability Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Income 7.9 16.6 21.5 16.9 18.8
Number of Shares
Net Profit After Tax 13% 22% 27% 24% 25%
Shareholders equity
Net Profit After Tax 9% 16% 20% 17% 18%
Total Assets
Gross Profit 20% 28% 31% 30% 34%
Net Sales
Operating Profit 12% 19% 23% 21% 25%
Net Sales
Net Profit After Taxes 8% 14% 19% 16% 17%
Net Sales
Operating Profit
Margin
Net Profit Margin
Earnings Per Share
Return on Equity
Return on Total
Assets
Gross Profit Margin
EPS is increasing over the years from Rs. 8 in 2011 to Rs. 18.8 in 2015
ROE is increasing over the years from 13% in 2011 to 25% in 2015
ROA has increased from 9% in 2011 to 18% in 2015
Gross Profit Margin has increased from 20% in 2011 to 34% in 2015
Operating Profit Margin has increased from 12% in 2011 to 25% in 2015
Net Profit Margin has increased from 8% in 2011 to 17% in 2015

5. Attock Cement – Liquidity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Current Assets 1.70 2.52 2.77 2.57 2.75
Current Liabilities
Current Assets - 0.34 1.05 1.86 1.81 1.97
Current Liabilities
Inventory 1.94 0.97 0.51 0.48 0.45
Current Assets -
Current Liabilities
Inventory to Net
Working Capital
Current Ratio
Quick Ratio
Current Ratio has increased from 1.7 : 1 in 2011 to 2.75 : 1 in 2015
Quick Ratio has increased from 0.34 : 1 in 2011 to 1.97 : 1 in 2015
Inventory to Net Working Capital Ratio has decreased from 1.94 : 1 in 2011 to
0.45 : 1 in 2015

6. Attock Cement – Leverage Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Total Debt 0.36 0.34 0.35 0.41 0.37
Shareholders Equity
Total Debts 0.25 0.26 0.26 0.29 0.27
Total Assets
Long Term Debt 0.10 0.14 0.76 0.15 0.12
Total Owners Equity
Profit Before Interest 42.59 175.54 179.68 88.44 123.88
Total Financial
Charges
Debt to Total
Assets
Long Term Debt to
Equity
Times Interest
Earned Ratio
Debt to Equity Debt to Equity Ratio increased from 0.36 : 1 in 2011 to 0.41 in 2014 but again
decreased to 0.37 : 1 in 2015
Debt to Total Assets Ratio initially increased from 0.25 : 1 in 2011 to 0.29 in
2014 but again decreased to 0.27 : 1 in 2015
Long-Term Debt to Equity Ratio initially increased from 0.1 : 1 in 2011 to 0.8 in
2013 but again decreased to 0.12 : 1 in 2015
Times Interest Earned Ratio initially increased from 43 : 1 in 2011 to 180 in 2013
but again decreased to 124 : 1 in 2015

7. Attock Cement – Activity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Sales 1.2 1.3 1.2 1.1 1.1
Total Assets
Net Sales 1.6 1.9 1.9 2.0 2.2
Fixed Assets
Net Credit Sales 168.5 55.9 32.9 47.9 105.2
Account Receivable
Account Receivable 2.2 6.5 11.1 7.6 3.5
Net Sales / 365
Sales 4.8 5.4 7.6 7.5 7.5
Inventory
Average Collection
Period
Inventory Turnover
Fixed Asset
Turnover
Recievable
Turnover
Total Asset
Turnover
Total Assets Turover initially increased from 1.2 : 1 in 2011 to 1.3 : 1 in 2012 but
again decreased to 1.1 in 2015
Fixed Assets Turover increased from 1.6 : 1 in 2011 to 2.2 : 1 in 2015
Receivable Turnover decreased from 168 times in 2011 to 105 times in 2015
Avg Collection Period increased from 2 days in 2011 to 11 days in 2013 but again
decreased to 3.5 in 2015
Inventory Turover increased from 4.8 in 2011 to 7.5 in 2015

9. INTRODUCTION
Incorporated in 1981, Cherat Cement is a premier name in the field of cement manufacturing, producing high quality
grey Portland cement using modern and sophisticated production facilities. The company has a production capacity of
1,000,000 tons per annum and enjoys strong brand loyalty amongst its customers both in Pakistan and abroad. The
shares of the company are listed on the Karachi, Lahore and Islamabad Stock Exchanges and it is a recipient of
Forbes “Asia Under a Billion Dollar” company award. The company has an ISO 9001:2008 certification
VISION
Growth through the best value creation for the benefit of all stakeholders.
MISSION
♦ Invest in projects that will optimize the risk-return profile of the Company.
♦ Achieve excellence in business.
♦ Maintain competitiveness by leveraging technology.
♦ Continuously develop our human resource.
♦ To be regarded by investors as amongst the best blue-chip stocks in the country.

10. Cherat Cement – Profitability Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Income 0.7 4.6 12.8 12.5 6.6
Number of Shares
Net Profit After Tax 0.0 0.2 0.3 0.3 0.2
Shareholders equity
Net Profit After Tax 0.0 0.1 0.2 0.2 0.1
Total Assets
Gross Profit 0.1 0.2 0.3 0.3 0.7
Net Sales
Operating Profit 0.1 0.0 0.3 0.3 0.3
Net Sales
Net Profit After Taxes 0.0 0.1 0.2 0.2 0.2
Net Sales
Earnings Per Share
EPS is increasing over the years from Rs. 0.7 in 2011 to Rs. 6.6 in 2015
Return on Equity
ROE is increasing over the years from 3% in 2011 to 16% in 2015
Return on Total
Assets ROA has increased from 1% in 2011 to 14% in 2015
Gross Profit Margin
Gross Profit Margin has increased from 13% in 2011 to 70% in 2015
Operating Profit
Margin Operating Profit Margin has increased from 8% in 2011 to 26% in 2015
Net Profit Margin
Net Profit Margin has increased from 2% in 2011 to 20% in 2015

11. Cherat Cement – Liquidity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Current Assets 1.0 4.5 2.0 3.3 2.7
Current Liabilities
Current Assets - Invetory 0.1 0.1 0.2 1.5 1.0
Current Liabilities
Inventory -18.9 0.3 1.9 0.8 1.0
Current Assets - Current Liabilities
Current Ratio
Current Ratio has increased from 1 : 1 in 2011 to 2.7 : 1 in 2015
Quick Ratio
Quick Ratio has increased from 0.1 : 1 in 2011 to 1 : 1 in 2015
Inventory to Net
Working Capital
Inventory to Net Working Capital has increased from -19 : 1 in 2011 to 1 : 1
in 2015

12. Cherat Cement – Leverage Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Total Debt 1.3 0.7 0.4 0.3 0.2
Shareholders Equity
Total Debts 0.6 0.4 0.3 0.2 0.2
Total Assets
Long Term Debt 0.5 0.3 0.2 0.7 0.9
Total Owners Equity
Profit Before Interest & Taxes 0.2 1.8 14.5 58.7 44.1
Total Financial Charges
Debt to Equity
Debt to Equity Ratio has decreased from 1.3 : 1 in 2011 to 0.2 : 1 in 2015
Debt to Total Assets Debt to Total Assets Ratio is decreased from 0.57 : 1 in 2011 to 0.15 : 1 in
2015
Long Term Debt to
Equity Long Term Debt to Equity Ratio increased from 0.5 in 2011 to 0.9 in 2015
Times Interest
Earned Ratio Times Internet Earned Ratio increased from 0.2 in 2011 to 44 in 2015

13. Cherat Cement – Activity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Sales 0.8 1.1 1.3 1.1 0.8
Total Assets
Net Sales 1.2 1.6 1.8 1.8 0.9
Fixed Assets
Net Credit Sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Account Receivable
Account Receivable 0.0 0.0 0.0 0.0 0.0
Net Sales / 365
Sales 2.7 4.6 4.5 4.2 4.5
Inventory
Total Asset
Turnover
Total Assets Turover initially increased from 0.8 : 1 in 2011 to 1.3 : 1 in 2013
but again decreased to 0.8 in 2015
Fixed Asset
Turnover Fixed Assets Turover decreased from 1.2 : 1 in 2011 to 0.9: 1 in 2015
Recievable
Turnover No Credit sales and there are no trade debts
Average Collection
Period No trade debts
Inventory Turnover
Inventory Turover increased from 2.7 in 2011 to 4.5 in 2015

14. D.G. Khan Cement

15. INTRODUCTION
D.G. Khan Cement Company Limited is a Pakistan-based cement manufacturing company. The Company is
engaged in the production and sale of clinker, ordinary portland and sulfate resistant cement. The Company's
segments include Cement, Paper and Dairy. The Cement segment is engaged in the production and sale of clinker,
Ordinary Portland and Sulfate Resistant cement. The Paper segment manufactures and supplies paper products and
packing material. The Dairy segment is engaged in the production and sale of raw milk. The Company has a
production capacity of 14,000 tons per day (4.2 million tons/annum). It has three cement plants, located at Dera
Ghazi Khan and at Khairpur, District Chakwal. Its plants are based on dry process technology. Its products are
marketed locally and internationally under a range of brands, such as Ordinary Portland Cement (DG brand-Grade
43), Ordinary Portland Cement (DG brand-Grade 53) and Ordinary Portland Cement (Elephant Cement).
VISION
To transform the Company into a modern and dynamic cement manufacturing company with qualified professionals
and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.
MISSION
To provide quality products to customers and explore new markets to promote/expand sales of the Company through
good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the
Company for sustainable and equitable growth and prosperity of the Company.

16. DG Khan Cement – Profitability Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Income 0.4 9.4 12.6 13.6 17.4
Number of Shares
Net Profit After Tax 0.0 0.1 0.1 0.1 0.1
Shareholders equity
Net Profit After Tax 0.0 0.1 0.1 0.1 0.0
Total Assets
Gross Profit 0.2 0.3 0.4 0.3 0.3
Net Sales
Operating Profit 0.1 0.2 0.3 0.3 0.4
Net Sales
Net Profit After Taxes 0.0 0.2 0.2 0.2 0.3
Net Sales
Earnings Per Share
EPS is increasing over the years from Rs. 0.45 in 2011 to Rs. 17.4 in 2015
Return on Equity
ROE is increasing over the years from 1% in 2011 to 12% in 2015
Return on Total
Assets ROA has increased from 1% in 2011 to 9% in 2013 then again came to 1% in 2015
Gross Profit Margin
Gross Profit Margin has increased from 24% in 2011 to29% in 2015
Operating Profit
Margin Operating Profit Margin has increased from 14% in 2011 to 38% in 2015
Net Profit Margin
Net Profit Margin has increased from 1% in 2011 to 29% in 2015

17. DG Khan Cement – Liquidity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Current Assets 1.4 1.6 2.8 5.4 4.8
Current Liabilities
Current Assets - Invetory 1.1 1.2 2.2 4.6 4.0
Current Liabilities
Inventory 0.8 0.7 0.3 0.2 0.2
Current Assets - Current Liabilities
Current Ratio
Current Ratio has increased from 1.4 : 1 in 2011 to 4.8 : 1 in 2015
Quick Ratio
Quick Ratio has increased from 1.1 : 1 in 2011 to 4 : 1 in 2015
Inventory to Net
Working Capital
Inventory to Net Working Capital has decreased from 0.8 : 1 in
2011 to 0.2 in 2015

18. DG Khan Cement – Leverage Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Total Debt 0.6 0.5 0.3 0.2 0.2
Shareholders Equity
Total Debts 0.4 0.4 0.2 0.2 0.2
Total Assets
Long Term Debt 0.2 0.2 0.1 0.1 0.1
Total Owners Equity
Profit Before Interest & Taxes 0.3 2.4 7.1 12.9 33.9
Total Financial Charges
Debt to Equity
Debt to Equity Ratio has decreased from 0.64 : 1 in 2011 to 0.2 : 1 in 2015
Debt to Total
Assets Debt to Total Assets Ratio is decreased from 0.4 : 1 in 2011 to 0.16 : 1 in 2015
Long Term Debt to
Equity Long Term Debt to Equity Ratio decreased from 0.22 in 2011 to 0.1 in 2015
Times Interest
Earned Ratio Times Internet Earned Ratio increased from 0.3 in 2011 to 34 in 2015

19. DG Khan Cement – Activity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Sales 0.7 0.9 0.4 0.4 0.4
Total Assets
Net Sales 0.6 0.7 0.7 0.6 0.6
Fixed Assets
Net Credit Sales 40.4 72.2 91.1 157.3 166.4
Account Receivable
Account Receivable 9.0 5.1 4.0 2.3 2.2
Net Sales / 365
Sales 4.2 4.5 4.3 5.3 5.4
Inventory
Total Asset
Turnover Total Assets Turover decreased from 0.75 : 1 in 2011 to 0.35 in 2015
Fixed Asset
Turnover Fixed Assets Turover increased from 0.59 : 1 in 2011 to 0.61: 1 in 2015
Recievable
Turnover Receivable Turnover increased from 40 times in 2011 to 166 times in 2015
Average
Collection
Period
Average Collection Period gradually decreased from 9 days in 2011 to
2 days in 2015
Inventory
Turnover Inventory Turover increased from 4.2 in 2011 to 5.4 in 2015

21. INTRODUCTION
1996 was the year when Abdur Razzak Tabba laid the foundations of Lucky Cement. He, at that time, had a vision to change
the way business is done. Now almost two decades later, we are on the path to pursue his dream and have brought the
change and revolution that he wanted to bring in the industry. Over the years, we have come a long way and have grown in
capacity, performance and image building.
Today, the country knows us as the largest cement manufacturers and innovators of the industry’s best practices. With
growing competition and expectations of our stakeholders, we have not only taken unconventional approaches to our
business operations, but are determined to promote economic growth and sustainable development of Pakistan
VISION
Ensure sustainable leadership position in Pakistan & increase global footprint in the cement sector. Identify & capitalize on
diversification opportunities to maximize shareholders’ value while remaining socially responsive in all spheres of operations.
MISSION
We strive to be a growth oriented company by identifying opportunities, making the right investments, producing high quality
cement and using innovative technology to achieve cost competitiveness and customer satisfaction. We endeavor to harness
the best human resources and providing them a level playing field in achieving long term goals. We aim to deliver sustained
growth and enduring value to our stakeholders. We recognize our obligations towards environment and corporate social
responsibility and seek to mitigate any adverse effects on our environment.

22. Lucky Cement – Profitability Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Income 12.3 21.0 30.0 35.1 38.4
Number of Shares
Net Profit After Tax 0.1 0.2 0.3 0.4 0.4
Shareholders equity
Net Profit After Tax 0.1 0.2 0.2 0.2 0.2
Total Assets
Gross Profit 0.3 0.4 0.4 0.4 0.5
Net Sales
Operating Profit 0.1 0.2 0.3 0.3 0.4
Net Sales
Net Profit After Taxes 0.2 0.2 0.3 0.3 0.3
Net Sales
Earnings Per
Share EPS is increasing over the years from Rs. 12.3 in 2011 to Rs. 38.4 in 2015
Return on Equity
ROE is increasing over the years from 14% in 2011 to 45% in 2015
Return on Total
Assets ROA has increased from 10% in 2011 to 17% in 2015
Gross Profit
Margin Gross Profit Margin has increased from 33% in 2011 to 45% in 2015
Operating Profit
Margin Operating Profit Margin has increased from 15% in 2011 to 35% in 2015
Net Profit Margin
Net Profit Margin has increased from 15% in 2011 to 28% in 2015

23. Lucky Cement – Liquidity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Current Assets 0.9 2.6 3.4 4.4 3.6
Current Liabilities
Current Assets - Invetory 0.2 0.8 1.7 2.6 2.8
Current Liabilities
Inventory -6.0 1.1 0.7 0.5 0.3
Current Assets - Current
Liabilities
Current Ratio
Current Ratio has increased from 0.9 : 1 in 2011 to 3.6 : 1 in 2015
Quick Ratio
Quick Ratio has increased from 0.2 : 1 in 2011 to 2.8 : 1 in 2015
Inventory to Net
Working Capital
Inventory to Net Working Capital has increased from -6 : 1 in 2011 to
0.3 : 1 in 2015

24. Lucky Cement – Leverage Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Total Debt 0.5 0.3 0.3 0.4 0.5
Shareholders Equity
Total Debts 0.3 0.2 0.2 0.2 0.2
Total Assets
Long Term Debt 0.1 0.1 0.1 0.1 0.1
Total Owners Equity
Profit Before Interest & Taxes 7.3 31.9 130.1 421.4 616.9
Total Financial Charges
Debt to Equity
Debt to Equity Ratio has increased from 0.48 : 1 in 2011 to 0.5 : 1 in 2015
Debt to Total
Assets
Debt to Total Assets Ratio is decreased from 0.33 : 1 in 2011 to 0.19 : 1 in
2015
Long Term Debt
to Equity Long Term Debt to Equity Ratio increased from 0.10 in 2011 to 0.11 in 2015
Times Interest
Earned Ratio Times Internet Earned Ratio increased from 7 in 2011 to 617 in 2015

25. Lucky Cement – Activity Ratios
Ratio Formula 2011 2012 2013 2014 2015 Trend
Net Sales 0.6 0.8 0.8 0.7 0.6
Total Assets
Net Sales 0.8 1.1 1.2 1.3 1.3
Fixed Assets
Net Credit Sales 41.9 31.7 22.7 20.7 21.9
Account Receivable
Account Receivable 8.7 11.5 16.1 17.6 16.7
Net Sales / 365
Sales 3.4 5.0 5.7 5.6 6.8
Inventory
Total Asset
Turnover
Total Assets Turover initially increased from 0.6 : 1 in 2011 to 0.7 : 1 in 2014
but again decreased to 0.6 in 2015
Fixed Asset
Turnover Fixed Assets Turover increased from 0.8 : 1 in 2011 to 1.3 : 1 in 2015
Recievable
Turnover Receivable Turnover decreased from 42 times in 2011 to 22 times in 2015
Average
Collection Period Average Collection Period increased from 9 days in 2011 to 17 days in 2015
Inventory
Turnover Inventory Turover increased from 3.4 in 2011 to 6.8 in 2015

26. Conclusion
• The Cement sector is growing during the period under review.
• All the companies under review have grown over the period 2011-2015.
• Net Sales and Profitability have been improved in the segment.
• The highest turnover is of Lucky Cement (Rs. 45 Billion) followed by D.G Khan
Cement (Rs. 26 Billion).
• Net Profit Margins are also very good and on increasing trend. Highest are of D.G.
Khan Cement (29%) followed by Lucky Cement (28%).
• All the companies under review have positive EPS, Lucky Cement being the
highest with Rs. 38/share and least is Cherat Cement with Rs. 7 / share.
• The liquidity position of all the companies under review is very good.
• The average collection period is also very attractive, Cherat Cement (no A/R), D.G.
Khan Cement (2 days), Attock Cement (3 days) and Lucky Cement (17 days).