Fauji Cement Co Ltd (FCCL) announced its financial results for 1HFY24-25 on the Pakistan Stock Exchange website on 25 February. The company reported earnings of PKR7.267bn (US$26m), reflecting a 38 per cent YoY increase compared to PKR5.274bn in the same period last year. In 2QFY24-25, revenues amounted to PKR4.020bn, showing a 51 per cent YoY. Strong revenue and gross profit have contributed to this increase in profit.
A company statement said that its dispatches in the 1HFY24-25 were 2.81Mt, an increase of nine per cent YoY, compared to 2.58Mt in the same period last year. During the 1HFY24-25, the company earned a net revenue of PKR47.844bn, compared to PKR40.352bn in the year-ago period. The increase in revenue is mainly attributable to higher dispatches and stable prices.
The gross profit margin improved to 35 per cent in the 1HFY24-25 compared to 32 per cent in 1HFY23-24. The advance has been attributed to better sale prices and the outcome of cost optimisation initiatives taken by the management, including packing material cost reduction after the acquisition of the PP Bags plant, higher usage of local coal, use of multiple types of alternative fuels, reduction in cost of power by increasing own power generation and optimisation of fixed cost. The company also benefited from the decrease in Interest rates with a reduction in KIBOR, which resulted in a reduction in Inflation and Policy rates by SBP in the 1HFY24-25.
Selling and distribution expenses decreased by 14 per cent YoY in the 1HFY24-25, amounting to PKR1403m. In the 2QFY24-25, these expenses also saw a 24 per cent YoY decline. Finance costs rose by 20 per cent YoY in the 1HFY24-25, totalling PKR2.409bn, primarily due to increased borrowings. In contrast, in the 2QFY24-25, finance costs grew by 13 per cent YoY.
