Fauji Cement sees full-year profit halve to PRK2.61bn

Fauji Cement Co Ltd reported a 51 per cent drop in net profit after tax to PKR2.61bn (US$24.5m) in FY17 from PKR5.36bn in FY16.

The Pakistani cement producer saw sales edge up to PKR 20.423bn from PKR 20.044bn in FY16. However, costs of sale also increased to PKR15.98bn from PKR10.87bn in previous fiscal year as a production halt in Line II led to the purchase of expensive clinker. The line is expected to be back on-stream in October.  The company incurred distribution cost of PKR166m and administrative expense of PKR339m in FY17 compared to PKR208m and PKR312m, respectively incurred in FY16.
 
On a more positive note, the company expects its future results to be favourably impacted by the commissioning of a 7.6MW WHR system on Line I in 4QFY18.