According to AHL Research, Fecto Cement Ltd (FECTC) management held a corporate briefing session on 24 November to discuss the FY22-23 and 1QFY23-24 financial results and future outlook. The management is in discussion of installing additional solar plants to become cost-efficient. In FY22-23 The company generated about 42 per cent of its power through captive plants, and the rest was taken from the Water & Power Development Authority. In 1QFY23-24 captive generation rose by 44 per cent.
The company posted a loss after tax of PKR133m in FY22-23 versus a profit of PKR287m in FY21-22. Due to the implementation of the axle load factor, the manufacturing price in the north is trading at PKR1200-1250/bag. As per management, local coal is anticipated to surge by PKR1500/t.
The company sources 50 per cent of its coal locally and imports the rest from Afghanistan. The ongoing mining issues persist, forcing the company to outsource its raw materials. Therefore, the company does not want to expand on its existing location.
