Topline Flash Note: Thatta Cement Company Limited (THCCL): Corporate Briefing Notes
- Thatta Cement Company (THCCL) conducted it analyst briefing today to discuss FY20 and 1QFY21 results and future outlook.
- The management expected the cement industry to continue to improve due to support packages announced by the government.
- Retention prices of the company is currently at Rs7,500/ton, while MRP is at ~Rs650/bag.
- The company sells power to HESCO at ~Rs15/kwh.
- Power requirement of the company is 95-100 Kwh/ton, while fuel requirement is around 780 Kcal/ton.
- The company is exporting cement/clinker to countries like Bangladesh and China.
- Export price for clinker is at around US$32/ton.
- In total sales, export has a contribution of 10-15%.
- The company witnessed 84% QoQ increase in cement dispatches to 52.7k tons in 1QFY21 due to low base effect amidst COVID-19 led lockdown in 4QFY20.
- Waste Heat Recovery (WHR) of 4-5MW was made operational in FY20.
- Alongside this, the company also operates 23.1MW coal power through its subsidiary Thatta Power Private Limited.
Thatta Cement Company Limited (TCCL) is a holding company. The Company is engaged in manufacturing, marketing and sale of cement. The Company's products include Ordinary Portland Cement (OPC), Sulphate Resistant Cement (SRC), Portland Blast Furnace Slag Cement (PBFSC), Grinded Granulated Blast Furnace Slag (GGBFS) and Class G Oil Well Cement. The Company's manufacturing plant is located approximately 115 kilometers North East of Karachi at Ghulamullah Road, Makli, District Thatta. The Company's facility is spread over 230 acres. The Company has mining rights for extracting limestone from approximately 2,365 acres, shale/clay from over 1,120 acres, and silica sand from approximately 1,240 acres of land.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
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