During the year under review Pakistan’s Fauji Cement generated net sales at Rs2296.23m against Rs 1,510.74m in the preceding year showing 16% growth. The gross profit by far exceeded the growth rate of sales.
Gross profit increased to Rs 740.82m from Rs 175.60m in the previous year showing 321.9% increase. Increased demand spurred the growth in sales and higher capacity utilisation which in turn reduced overhead cost per unit. Moreover the rising demand also stabilised the selling price at higher level.
The company posted profit before tax and deferred cost amortisation compared to loss in the previous year. But large amortisation amount could not be fully absorbed.
The installed capacity of the plant has been rated at 945 thousand tonnes of cement per year. The actual production substantially increased during the year under review. Resultantly, the utilised capacity during the year under review reached 87.43% from 68.06% in the preceding year.
The average cost/ton reduced to Rs 1,868.40 during the year from Rs 2,077.15 in the preceding year. The coal grinding plant supplied and installed by CEMAG of Germany is in the process of being commissioned.
