Gharibwal Cement Limited (GWLC) is a public limited Company incorporated in Pakistan on December 29, 1960, and registered with the Securities and Exchange Commission of Pakistan. The Company’s shares are listed on the Pakistan Stock Exchange under the symbol “GWLC.”

Gharibwal Cement Limited was nationalized in 1972 and remained under government ownership for nearly two decades. In 1993, the Company was privatized by the Privatisation Commission of Pakistan, with majority shareholding and management control transferred to the current sponsors, Mr. Tousif Peracha and Mr. Abdur Rashid Khan, a foreign entrepreneur. This transition marked a new phase of modernization and growth. Under their leadership, the Company has undertaken significant capacity expansions, technological upgrades, and market development initiatives, strengthening its financial performance and competitive position within Pakistan’s cement industry. GWLC currently operates a state-of-the-art manufacturing facility with a clinker production capacity of 7,500 tons per day, enhanced in 2025, comprising approximately 60% Chinese and 40% European equipment.

Gharibwal Cement Limited is primarily engaged in the manufacturing and sale of cement, serving domestic market demand through its integrated production operations. The Company operates a modern cement manufacturing facility located at Ismailwal, Tehsil Pind Dadan Khan, District Chakwal, which is strategically positioned near key raw material sources to ensure operational efficiency and cost optimization. GWLC’s operational framework focuses on efficient clinker production, grinding, and dispatch, supported by continuous capacity enhancements and technological upgrades.

As of June 30, 2025, the ownership of Gharibwal Cement Limited is highly concentrated, with the Peracha family holding approximately 56.4% of the Company’s equity and the Khan family holding around 32%, largely through individual shareholdings. Together, these families constitute the controlling shareholder group, with Mr. Muhammad Tausif Peracha emerging as the single largest shareholder and the ultimate controlling influence over the Company. Outside the sponsoring families, shareholding by financial institutions and asset management companies remains limited. The free float accounts for approximately 10% of total outstanding shares, resulting in relatively low market liquidity on the Pakistan Stock Exchange. Within this free float, only a modest portion is held by foreign investors and other minor shareholder categories, indicating limited institutional and foreign participation relative to insider ownership.

Gharibwal Cement Limited currently has no formal shareholders’ agreement between its two sponsoring families. With second-generation involvement underway, establishing such an agreement is crucial to ensure continuity, clear governance, and risk mitigation. Formalizing the existing tacit understandings will help address future succession and governance challenges.

Mr. Muhammad Tausif Peracha and Mr. Abdur Rafique Khan have been business partners for over three decades, collaborating on various international ventures, primarily in shipping and real estate. The next generation has expanded into the entertainment and food industries, further diversifying the business portfolio. Their extensive experience and long-standing association across multiple sectors contribute to their strong business acumen.

Mr. Muhammad Tousif Peracha and his family hold stakes in Baluchistan Glass Limited (50%). Besides these businesses, Mr. Peracha is involved in real estate projects and has equity in foreign ventures like ‘Ship and Shore’ and ‘National Truck Manufacturing’ in Nigeria. The sponsors’ financial strength is supported by their diverse business interests and property holdings. This reflects strong business acumen and financial muscle.

The overall control of the Company rests with a nine-member Board of Directors, ensuring compliance with the Corporate Governance Code for listed companies. The Board is chaired by Khalid Siddiq Tirmizey, an Independent Director, and includes CEO Muhammad Tousif Peracha. Other members are Executive Directors Ali Rashid Khan and Mustafa Tousif Ahmed Peracha; Independent Directors Shafqaat Ahmed and Faisal Aftab Ahmad; and Non-Executive Directors Amna Khan, Main Nazir Ahmed Peracha, and Daniyal Jawaid Peracha.

Each board member holds professional qualifications and brings extensive experience across diverse fields, demonstrating their competence in making key decisions for the Company. The board collectively possesses strong business acumen backed by significant local industry exposure. Mr. Khalid Siddiq Tirmizey, Chairman and Independent Director, has over 41 years of experience in banking with leadership roles at The Bank of Punjab and Fayal Bank Limited, along with broad sector expertise and multiple corporate chairmanships. CEO Muhammad Tousif Peracha is a seasoned industrialist with over 30 years in international shipping, petroleum products, and glass industries. Executive Directors Ali Rashid Khan and Mustafa Tousif Ahmed Paracha have extensive backgrounds in banking and business management, respectively. Independent Directors Shafqaat Ahmed and Faisal Aftab Ahmad bring strong expertise in corporate finance, accounting, and financial advisory. Non-Executive Directors Amna Khan, Main Nazir Ahmed Peracha, and Daniyal Jawaid Peracha hold qualifications in psychology, accounting, and chartered accountancy, contributing diverse professional insights to the board.

GWLC has established a robust governance framework in compliance with the Code of Corporate Governance, with the Board of Directors (BoD) as the primary decision-making body responsible for setting strategic direction, overseeing risk management, and ensuring effective internal controls. The Board appoints the CEO and senior executives, approves financial goals, monitors performance, and ensures compliance with legal, regulatory, sustainability, and corporate social responsibility requirements. To support these duties, the Board has formed the Audit Committee and the Human Resource & Remuneration Committee, along with an Investors’ Relationship Committee to handle investor complaints, enhance services, and supervise share allotments and privately placed securities. During the reporting period, the Audit Committee met five times, while the Human Resource & Remuneration Committee met once. The Board convenes quarterly, with the Chairman setting agendas to ensure thorough discussion of key matters. The governance framework also prioritizes continuous disclosure, materiality assessment, and active shareholder engagement through general meetings and transparent communication channels, reinforcing accountability and trust.

A publicly listed Company, GWLC’s Board is dedicated to upholding the highest standards of transparency, accountability, and ethical conduct. To foster effective communication with stakeholders, the Company ensures the timely preparation of financial statements with all necessary disclosures, in compliance with Pakistan Stock Exchange (PSX) rules and Securities & Exchange Commission of Pakistan (SECP) regulations. M/s Kreston Hyder Bhimji and Co. Chartered accountants, ‘A’ category SBP panel member, the external auditors have given an unqualified opinion on the Company’s financial statements for the year ended Jun-25.

The organizational structure of the Company is divided into several key functions and committees. These include i) Plant Operations, ii) Procurement, iii) Finance, iv) Commercial, v) Marketing, vi) Administration, vii) Investors' Relations, and viii) Internal Audit. The General Manager Plant, supported by a specialized team including the Heads of Production, Maintenance, Power House, Quality Control, Dispatch, Mining, and Inventory, resides at the Plant. All functional heads—including the Director Commercial, CFO, and Heads of Procurement, Marketing, and Administration, report to the CEO, except for the Internal Audit Function, which reports directly to the Audit Committee.

Mr. Tousif Peracha the CEO, a seasoned industrialist with more than 30 years of experience across a wide array of sectors, including international shipping, petroleum products, textiles, real estate development, glass, cement, and automobile manufacturing. He is accompanied by a team of qualified and competent individuals who head their respective departments.

The management is supported by four key committees that play a vital role in strategic decision-making and operational oversight. The Core Executive Committee focuses on high-level business strategies and overall organizational direction. The Investor Relations Committee ensures transparent communication with shareholders and addresses investor concerns, fostering trust and engagement. Together, these committees strengthen governance and enhance overall management efficiency.

Gharibwal Cement utilizes Microsoft Dynamics 365 Finance and Operations as its core Tier-1 ERP system, successfully transitioned on July 1, 2025, integrating key modules such as finance, purchase, inventory, sales, and payroll. Additionally, the Company has developed a dedicated sales and dispatches module to monitor sales, dispatches, and customer balances, while a separate system tracks plant operational performance. Senior management conducts daily reviews of critical metrics, including cement prices, production, dispatches, power and fuel consumption with year-to-date comparisons, and receivables/payables status. Monthly division-wise sales reports are generated, and variance analysis is performed quarterly with comparative reviews of corresponding periods. This strategic upgrade underscores management’s commitment to digital transformation, enhancing reporting efficiency, strengthening internal controls, and providing real-time insights to support informed and timely decision-making across the organization.

The Company has established robust internal control systems that are effectively implemented and continuously monitored, supported by a comprehensive audit framework to ensure accurate financial reporting, alignment with operational and strategic objectives, and compliance with applicable laws and regulations. Well-documented Standard Operating Procedures (SOPs) are maintained and regularly reviewed and updated as necessary. The Internal Audit Function, led by a skilled and experienced team, assesses the effectiveness of controls and adherence to compliance requirements. This independent oversight provides the Audit Committee and the Board with confidence regarding the adequacy of risk management and governance processes. The Internal Audit Function’s scope and authority are clearly defined and formally approved by the Audit Committee.

Pakistan’s cement industry is showing clear signs of recovery after a prolonged slowdown, supported by stabilization under the IMF program. Inflation has eased, the Rupee has remained largely stable, and interest rates have been maintained, although fiscal pressures and a widening trade deficit continue to constrain development spending. Despite these challenges, industry demand has strengthened, with overall dispatches rising notably in the first quarter. Domestic sales increased by 15.08% due to revived private construction activity, improved project execution, and gradually returning consumer confidence. Exports grew by 21%, driven by stronger sea-based shipments and higher dispatches to Afghanistan, though border tensions pose a risk. Five-month industry offtake rose 12% year-on-year, with domestic volumes up 15%, signaling improving construction momentum. Policy measures, including the Mera Ghar Mera Ashiana housing scheme and tax incentives, are supporting residential demand and may stimulate urban property markets. Export performance remains a crucial buffer, contributing approximately one-fifth of the sales mix. However, capacity utilization remained low at approximately 61%, reflecting the mismatch between installed capacity and combined domestic and export demand. South-based producers continue to benefit from better export access, while North-based players face higher logistics costs. Looking ahead, FY26 volumes are expected to reach 51–52 million tons, indicating steady progress toward recovery. Continued private-sector construction, post-flood rehabilitation, and resilient exports are likely to support demand growth and gradually improve utilization levels. Overall, the sector is stabilizing and moving toward a more sustainable growth path.

Gharibwal Cement, a mid-tier cement producer with an annual capacity of 2.25 million tons, has undertaken key projects to enhance operational efficiency, including the installation of a raw material conveyor belt, a waste heat recovery power plant (WHRPP), and a cement grinding mill. During the year, the Company commissioned an additional 12.5MW solar power plant, increasing total solar capacity to 24.5MW. This significant investment supports the reduction of CO2 emissions, energy diversification, and environmental sustainability, reflecting commitment to a green energy transition. Furthermore, ongoing balancing, modernization, and replacement (BMR) initiatives, such as cooler retrofits and other energy-efficiency measures, are expected to optimize fuel consumption and enhance cost competitiveness.

In FY25, GWLC recorded cement dispatches of 1.220mln MT (FY24: 1.193mln MT), generating net revenues of PKR 19,620mln (FY24: PKR 18,165mln). This represents 8.0% increase, primarily driven by energy efficiencies from the previously commissioned 12MW solar power system and the successful cooler retrofit, though the benefit was partially offset by an increase in royalty rates. Similar upward trend was witnessed during 1QFY26, resulting in net revenues of PKR 4,915mln (1QFY25: PKR 4,317mln).

The Company has consistently improved its margins through effective cost control and strategic pricing initiatives. Key drivers of this improvement include the commissioning of a 24.5 MW solar power plant and the installation of a cooler system that reduces coal consumption by 2-3%, enhances heat recovery, and improves clinker quality. Additionally, the switch to locally sourced Khushab coal in place of imported coal has further boosted operational efficiency. As a result, the gross profit margin stood at 13.3% in 1QFY26, compared to 23.4% in FY25, 20.8% in FY24, and 27.2% in 1QFY25. Net profit margin was 5.6% in 1QFY26, down from 11.2% in FY25, 9.6% in FY24, and 12.4% in 1QFY25. The decline in the gross profit of first quarter was primarily due to a planned kiln shutdown amid substantial clinker inventory at the start of the fiscal year, leading to ongoing fixed and periodic manufacturing costs and resulting in temporary under-absorption of overheads. Additionally, an 8% reduction in retention prices partially offset the benefits of higher sales volumes.

Guided by the ESG commitment, the company has advanced its sustainability agenda by commissioning a 12.5MW solar plant, raising total solar capacity to 24.5MW, thereby reducing CO2 emissions and diversifying the energy mix. This strategic investment underscores the focus on green energy and long-term environmental stewardship. The cooler retrofit project was successfully completed and commissioned, increasing Line-I clinker production capacity from 6,700 TPD to 7,500 TPD, improving both throughput and energy efficiency. Concurrently, balancing, modernization, and replacement (BMR) initiatives, along with expansion plans, continue as scheduled, enhancing fuel optimization and cost competitiveness.

For 1QFY26, GWLC's working capital requirements, represented by the net cash cycle (net working capital days), remained stable at 82 days (FY25: 107 days). The Company effectively manages its working capital needs through internally generated cash flows.

During 1QFY26 and FY25, GWLC's Free Cash Flow from Operations (FCFO) was recorded at PKR 483mln and PKR 3,484mln, respectively (1QFY25: PKR1,029mln, FY24: PKR3,273mln), driven by improved profitability. As a result, the Interest Coverage Ratio (FCFO/Finance Cost + CMLTB + Excess Borrowings) recorded at 5.2x in 1QFY26 and 8.7x in FY25.

As of FY25, the Company's capital structure remained moderate to low, with a total debt-to-debt plus equity ratio of 3.1% in 1QFY26 and FY25: 3.3%. The Company’s borrowings decreased YoY from PKR 1165mln in FY24 to PKR 894mln in FY25, primarily with the on time payment of loan. Going Forward, the Company's leverage may increase depending on the execution of its planned expansion projects.