Fauji Cement Company Limited has posted a 31.75% growth in its profits for the year ended on June 30, 2018 as the company reported total profits of 3.429 billion rupees this year, compared to the 2.613 billion rupees in profits during the year before.
The growth in profits is largely driven by a 49% drop in income taxes charged to the company’s pre-tax profits, as tax expenses reduced from 1.317 billion rupees to 668 million rupees this year.
Sales rose by 3.61% over the year, while cost of sales remained around the same level as last year, leading to a 15% growth in gross profits for the year.
With the exception of finance costs, all other expenses of the firm, including distribution cost, administrative expenses and other operating expenses of the firm, increased this year, with the largest increase witnessed in distribution expenses.
As a result, the company’s profits before taxation rose by 4.27% in 2018, having been reported at 4.098 billion rupees compared to 3.930 billion rupees in the year 2017.
The company also declared an earnings per share of Rs 2.49 this year, a 31.75% increase over the EPS of Rs 1.89 declared last year.
Moreover, the company declared a final cash dividend for the year at Rs 1.00 per share in addition to the interim cash dividend already paid at Rs 1.00 per share.
| Profit and Loss Account for the Year Ended June 30th 2018 ('000 Rupees) | |||
|---|---|---|---|
| Jun-18 | Jun-17 | % Change | |
| Turnover – net | 21,160,878 | 20,423,356 | 3.61% |
| Cost of Sales | (16,046,291) | (15,985,679) | 0.38% |
| Gross Profit | 5,114,587 | 4,437,677 | 15.25% |
| Distribution Cost | (275,933) | (166,361) | 65.86% |
| Administrative Expenses | (385,602) | (339,766) | 13.49% |
| Other Operating Expenses | (311,184) | (291,095) | 6.90% |
| Finance Cost | (147,813) | (152,960) | -3.36% |
| Other Income | 104,094 | 136,884 | -23.95% |
| Insurance Claim | – | 305,842 | |
| Profit before Taxation | 4,098,149 | 3,930,221 | 4.27% |
| Income Tax Expense | (668,685) | (1,317,010) | -49.23% |
| Profit for the Year | 3,429,464 | 2,613,211 | 31.24% |
| Earnings per Share – Basic and Diluted (Rs) | 2.49 | 1.89 | 31.75% |
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