Fauji Cement profit rises 24%, shares surge

October 25, 2024 (MLN): Fauji Cement Company Limited (PSX: FCCL) posted a net profit of Rs3.25 billion [EPS: Rs1.32] during the quarter ending September 2024, up 24.2% from the same period last year (SPLY).

Its shares jumped almost 7% during intraday trade on Friday.

The company's revenue increased by 13.0% to Rs22.96bn as compared to Rs20.31bn in SPLY. Gross profit increased by 24.7% to Rs7.88bn in Q1 FY25.

The gross margins improved to 34.3% as compared to 31.1% in SPLY. This is mainly attributable to improved domestic sales, stable sale prices and cost optimization initiatives taken by the management, the company said.

Higher usage of local coal and multiple type of alternative fuels, reduction in cost of power by further enhancing solar power generation and optimization of fixed costs contributed towards achieving the overall results.

During the period under review, other income surged 213.4% to stand at Rs494.09m in Q1 FY25 as compared to Rs157.64m in SPLY.

On the expense side, the company's administrative expenses rose 15.9% from a year ago to Rs413.67m, other operating expenses rose 29.3% to Rs362.61m, while selling and distribution expenses fell 1.5% to Rs693.3m.

The company’s finance cost rose by 48.3% and stood at Rs1.68bn as compared to Rs1.13bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.99bn against the Rs1.39bn paid in the corresponding period of last year, depicting an increase of 42.5%.

This translates to an effective tax rate of 38.0% as compared to 34.8% in SPLY.

Amount in thousand except for EPS

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