Fauji Cement full-year net profit rises 27% YoY

Pakistan-based producer Fauji Cement reported a net profit of PKR2.39bn (US$23.7m) for the fiscal ending 30 June 2014, up 27 per cent YoY compared to PKR1.88bn in the year before.

An increase in cement prices and lower financial charges contributed to the Fauji Cement’s earnings, a report by Global Research said.

During the fourth quarter, earnings declined 46 per cent QoQ to PKR403m due to a higher effective tax rate of 54 per cent (versus 40 per cent during 3QFY13) and a preferred dividend of PKR227m.

Despite a two per cent YoY decline in total dispatches to 2.45Mt, revenues rose by 10 per cent YoY to PKR17.53bn during FY14 because of a 12 per cent YoY increase in cement prices to PKR505/bag.

Revenues increased by 16 per cent YoY to PKR4.99bn during 4Q14 because of a 15 per cent QoQ increase in total dispatches to 0.68Mt.

Gross margins increased by three percentage points YoY to 35 per cent because of the cement price hike and lower coal prices, which averaged US$77/t during FY14 (a nine per cent change YoY) compared to US$85/t during FY13. Financial charges declined by 31 per cent YoY to PKR1.04bn during the fiscal year because of a 29 per cent YoY decline in an outstanding debt of PKR8.7bn as of 30 March 2014.