Fauji Cement Co reports capacity utilisation of 64% in 1QFY23-24

Fauji Cement Co Ltd (FCCL) announced its financial results for 1QFY23-24, which ended on 30 September 2023, at the Pakistan Stock Exchange (PSX) on 25 October. 

The company said that the 1QFY23-24 saw a considerable increase of 14 per cent YoY in the industry’s domestic demand, a 48 per cent increase in exports to Afghanistan and an overall increase of 16 per cent. Thus, the company’s comprehensive dispatches increased by 25 per cent, with capacity utilisation of 64 per cent.

FCCL earned a profit after tax (PAT) of PKR2.6bn (US$312.7m) in the 3QFY23-24 compared to PKR2.3bn in the same period last year, showing an increase of 13 per cent.

The management continued its focus on implementing cost optimisation initiatives, including an increase in the use of local coal, higher usage of alternative fuel and increasing captive solar generation capacity to 40MW, along with the use of a waste heat recovery power plant, fulfils almost 60 per cent of company’s requirement during the daytime operations. All cement plants of FCCL now have solar captive power capacity. In addition, fixed cost rationalisation has also contributed to achieving the above results.

DG Khan expansion
The  greenfield expansion at DG Khan (Nishat Group) is expected to be completed in the 2QFY23-24, increasing the company’s capacity and, thereby, its market share.