Key Takeaways
- PCAL, a major player in the cable manufacturing industry, saw its net profit surge by 44.67% in 2021.
- The company's margins recovered significantly in 2021 before declining sharply in subsequent years.
- Despite initial success, PCAL reported a net loss in 2025.
Pakistan Cables Limited (PCAL), a private limited company incorporated in 1953 and converted into a public limited company in 1955, has seen significant fluctuations in its financial performance over the past few years. As of June 30, 2025, PCAL had a total of 54.457 million shares outstanding held by 2421 shareholders.
The shareholding pattern reveals that directors, CEO, their spouse and minor children collectively hold a majority stake of 26.96 percent in the company. Local general public holds 25.86 percent, while associated companies like International Industries Limited and Shirazi Investments (Private) Limited own 17.12 percent and 4.22 percent respectively. Banks, DFIs, NBFIs, insurance companies, takaful, modarabas & pension funds collectively account for 2.28 percent of the company’s shares.
PCAL's financial performance has been marked by a significant increase in topline growth from 2021 to 2025. In 2021, the company recorded net sales of Rs. 13,145.05 million, marking a year-on-year rise of 44.67 percent. This growth was driven by multiple policy initiatives undertaken by the government and increased demand in the construction sector. The company also invested in a new plant using SBP Temporary Economic Refinance Facility (TERF), which contributed to its sales volume.
However, the sharp spike in international copper prices during 2021 led to price rationalization of PCAL's products, bolstering net sales. Sales to the African region remained upbeat throughout the year. Cost of sales grew by 41.24 percent year-on-year, while gross profit increased by 77.44 percent with a gross margin jumping up to 11.61 percent from 9.47 percent in 2020.
Despite these positive indicators, PCAL faced challenges that affected its profitability. Distribution expenses rose by 19.46 percent year-on-year due to higher freight charges and payroll expense. Administrative expenses also increased by 22.34 percent year-on-year. Other expenses saw an extraordinary growth of 1142.26 percent, primarily due to increased provisioning for WWF and WPPF. Conversely, other income grew significantly by 382.54 percent on the back of insurance claims received against business interruption.
Operating profit posted a staggering year-on-year growth of 322.83 percent in 2021 with an operating margin of 7.69 percent. However, this momentum did not sustain into subsequent years. By 2025, PCAL reported net losses, indicating a significant downturn in its financial health.
The company's margins followed a similar trajectory. While gross and operating margins peaked at their highest levels in 2023, the net margin began to decline sharply from 2024 onwards. By 2025, all margins registered a plunge, reflecting the challenges faced by PCAL in maintaining profitability.
In conclusion, while Pakistan Cables Limited experienced remarkable growth and success in 2021, it has since faced significant financial challenges that led to net losses in recent years.
