Fauji Cement posts FY2020 loss of PKR59m

Fauji Cement Co Ltd declared a loss of PKR59m (US$0.355m) for the year ended 30 June 2020. The company earned PKR2.824bn in the year ended 30 June 2019.

“FCCL’s topline witnessed a decline of 27 per cent YoY to PKR3.75bn during 4QFY20 led by weaker retention prices as well as an 11 per cent dip in dispatches to 705,000t (local off-take dwindled by five per cent YoY to 700,000t),” reported Arif Habib Ltd in its analysis.

In FY20 the topline suffered a decline of 17 per cent YoY as lower retention prices offset the impact of a two per cent growth in dispatches (3.09Mt versus 3.03Mt),” the brokerage house added.

During the 4QFY20, gross margins of the company turned red at six per cent (4QFY19: 23 per cent) amid revenue decline due to the aforementioned reasons, rupee depreciation, and higher electricity tariff per kWh. Whereas, margins declined on QoQ basis from three per cent in the 3QFY20 owed to a five per cent drop in sales and currency depreciation, which offset the impact of lower coal prices.

In FY20 gross margins fell to four per cent vis-à-vis 26 per cent in the same period last year attributable to weakness in topline, higher energy costs and rupee depreciation.