Fauji Cement Co Ltd (FCCL), one of Pakistan's largest cement manufacturers and exporters, on April 18 reported earnings of PKR4.33bn (US$41.34m) for 9MFY16 compared to PKR2.65bn in 9MFY15, posting a growth of 64 per cent YoY.

Analysts at BMA Capital Management Ltd attributed the growth in earnings firstly to a 13 per cent YoY growth in revenue due to higher dispatches and secondly to an 11 per cent growth in gross margins. The increase in gross margins can be attributed to a declining cost of fuel, savings from a waste heat recovery plant and also substitution of grid based power with fuel-oil based captive generation.

Earnings reported a decline of seven per cent QoQ to PKR1.56bn compared to PKR1.67bn in the preceding quarter. The QoQ decline is attributable to a six per cent QoQ decline in revenues due to a slowdown in dispatches and a 70 basis point QoQ contraction in gross margins.