April 26, 2022 (MLN): Fauji Cement Company Limited (FCCL) has registered a 55.6% YoY jump in its nine-month profits that clocked in at Rs4.06billion (EPS: Rs2.94) compared to the profits of Rs2.61bn (EPS:1.89) in the corresponding period last year.
The significant improvement in the company’s earnings can be attributed to higher gross margins and net finance income.
Going by the financial statement of the company, the topline of the company surged by 31% YoY to stand at Rs23bn during 9MFY22, mainly due to higher retention prices which counterbalanced the impact of a 3% downturn in offtake to 2,502k tons.
This took the margins in 9MFY22 to 28.0% against 25.6% in 9MFY21 amid better margins in the first half on account of effective price hikes which remained sufficient to offset the impact of augmented cost pressures emanating from adverse movement in coal, PKR-USD parity and energy tariff, a research report by Arif Habib Limited (AHL) said.
During the period under review, the company continued to book finance income of Rs317mn in lieu of its investment in mutual funds, which aided the jump in profitability YoY against Rs44mn net finance cost reported in 9MFY21.
On the taxation front, the company’s effective tax rate improved to 29% in 9MFY22 as opposed to 30% booked in the same period last year.
|
Profit and Loss Account for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Revenue – net |
22,923,739 |
17,528,386 |
30.78% |
|
Cost of Sales |
(16,507,404) |
(13,047,910) |
26.51% |
|
Gross Profit |
6,416,335 |
4,480,476 |
43.21% |
|
Selling and distribution expenses |
(160,520) |
(141,799) |
13.20% |
|
Administrative Expenses |
(513,327) |
(371,236) |
38.28% |
|
Other expenses |
(424,444) |
(276,862) |
53.31% |
|
Other income |
87,218 |
107,990 |
-19.24% |
|
Operating profit |
5,405,262 |
3,798,569 |
42.30% |
|
Finance cost |
(76,486) |
(89,991) |
-15.01% |
|
Finance income |
393,535 |
45,777 |
759.68% |
|
Net finance income/(cost) |
317,049 |
(44,214) |
– |
|
Share of loss of associate |
(3,629) |
– |
– |
|
Profit before Taxation |
5,718,682 |
3,754,355 |
52.32% |
|
Taxation |
(1,656,607) |
(1,143,545) |
44.87% |
|
Profit for the period |
4,062,075 |
2,610,810 |
55.59% |
|
Earnings per Share – Basic and Diluted (Rs) |
2.94 |
1.89 |
55.56% |
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