Thatta Cement : Transmission of Quarterly Report for the Period Ended 2022-12-31

CONTENTS

Vision & Mission	2
Company Information	3
Directors' Review	4
Auditor's Review Report	7
Condensed Interim Unconsolidated Financial Statements	8
Condensed Interim Consolidated Financial Statements	27

Vision

To transform the Company into a modern and dynamic cement manufacturing unit fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.

Mission

To provide quality products to customers at competitive prices; and

To generate sufficient profit to add to the shareholder's value.

2

COMPANY INFORMATION

BOARD OF DIRECTORS
Mr. Khawaja Muhammad Salman Younis	Chairman
Mr. Muhammad Aslam Shaikh	Chief Executive
Ms. Naheed Memon	Director
Mr. Noor Muhammad	Director
Mr. Saleem Zamindar	Director
Mr. Kamran Munir Ansari	Director
AUDIT COMMITTEE
Ms. Naheed Memon	Chairperson
Mr. Khawaja Muhammad Salman Younis	Member
Mr. Saleem Zamindar	Member
HR & REMUNERATION COMMITTEE
Mr. Noor Muhammad	Chairman
Mr. Muhammad Aslam Shaikh	Member
Mr. Kamran Munir Ansari	Member
IT STEERING COMMITTEE
Mr. Khawaja Muhammad Salman Younis	Chairman
Mr. Muhammad Aslam Shaikh	Member

CHIEF FINANCIAL OFFICER	REGISTERED OFFICE
Mr. Muhammad Rafique	CL/5-4 State Life Building # 10,
	Abdullah Haroon Road, Karachi, Pakistan.
COMPANY SECRETARY	UAN: 0092-21-111-842-82
Mr. Muhammad Abid Khan	Fax no.: 0092-21-35665976-77
	Website: www.thattacement.com
	E-mail: [e-mail]
STATUTORY AUDITOR
M/s BDO Ebrahim & Co., Chartered Accountants
	FACTORY
	Ghulamullah Road, Makli,
CORPORATE ADVISOR	District Thatta, Sindh 73160
M/s Sharjeel Ayub & Co., Chartered Accountants
	SHARE REGISTRAR
LEGAL ADVISOR	THK Associates (Pvt) Limited
M/s Usmani & Iqbal	Plot # 32-C, Jami Commercial
	Street 2, Phase -VII, DHA,
	Karachi, Pakistan.
BANKERS - CONVENTIONAL	UAN: 021-111-000-322
National Bank of Pakistan	Fax: [phone]
Sindh Bank Limited	Website: www.thk.com.pk
Summit Bank Limited

3

DIRECTORS' REVIEW

The Board of Directors is pleased to present its review together with the un-audited condensed interim financial statements for the half year ended December 31, 2022.

OVERVIEW

Production and dispatch statistics for the half year ended December 31, 2022 are as follows:

	Description		December 31, 2022		December 31, 2021	Variance
			---------------		Metric Tons---------------	%%
	Production
	Clinker		189,613		121,964	67,649		55.46
	Cement		211,049		203,550	7,499		3.68
	Dispatches
	Clinker		-		4,987	(4,987)		(100)
	Cement		214,741		205,186	9,555		4.66

During the period under review, persistent political instability and indecisive monetary measures have left the business to face gross challenges. Recent floods brought on by extremely strong monsoon rains have damaged the national infrastructure and created a food crisis. The catastrophic flood has killed thousands of people, besides sinking one-third of the country into water. This has further compounded the agony of an economy which has already been struggling for its survival due to ever increasing current account deficit, sharply rising inflation rate and massive rupee devaluation. The unprecedented rise in SBP policy rate further deteriorated the economic condition of the country. The restriction on imports has negatively impacted domestic manufacturing across various sectors. It is therefore crucial for the Government to implement strategic structural reforms that will increase exports of goods and services in the medium term, thus bringing balance to the economy.

The management of your Company closely monitors the situation and develops and implements mitigating strategies to minimize the impact on its operational and financial performance.

Under these circumstances, the performance of the Company remained adversely affected in the first quarter of the period under review. However, in the second quarter, the Company's performance picked up which resulted in an increase of 4.66% in local cement dispatches in comparison with the corresponding period of last year.

The Company achieved 57.46% overall clinker production capacity by producing 189,613 tons of clinker against 36.96% capacity utilization with clinker production of 121,961 tons in the same period of last year.

INDUSTRY REVIEW

During the period under review, industry performance was severely affected due to an unpredictable upward trend in the international/local coal prices, rise in energy prices, high cost-push inflation coupled with rupee depreciation along with political turmoil, both locally and globally.

During the period under review, the cement industry posted a decline of 20.73% in local and export dispatches. Local dispatches remained at 20.03 million tons (2021: 24.06 million tons) with a decline of 16.77%. Moreover, the industry exhibited a declining trend in export dispatches throughout the period under review. Consequently, export dispatches posted a decline of 48.86% and stood considerably low at 1.73 million tons (2021: 3.39 million tons).

4