August 27, 2024 (MLN): Fauji Cement Company Limited (PSX: FCCL) reported a profit after tax of Rs1.18 billion [EPS: Rs0.48] during the second quarter of 2024, up 150% from a year ago.
To reward shareholders for this performance, the board of directors (BoD) of FCCL has recommended a final cash dividend of Rs1 per share i.e. 10%.
The company's sales grew 27.6% to Rs20.63bn as compared to Rs16.16bn in the same period last year.
The cost of sales also rose 34.2% but was lesser than proportionate to sales rise, which improved the gross profit by 17.5% to Rs7.47bn in Q2 2024.
The gross margins, however, worsened to 36.2% as compared to 39.3% in SPLY.
In the full fiscal year ending June 2024, the company earned the highest-ever profit of Rs8.2bn. This is despite of additional charge of deferred tax amounting to Rs1.8bn on account of latest amendment made in tax laws, where income tax on exports has been changed from presumptive tax (deducted at the time of export realization) to normal tax.
The company's dispatches during FY24 were recorded at 5.1 million tons as compared to 4.8m tons in SPLY, an increase of 10%.
Fauji Cement earned a net revenue of Rs80.03bn as compared to Rs68.07bn in the previous year; an increase of 18%.
The gross profit margin increased to 32% as compared to 30% in FY23. This is mainly attributable to better sale prices in local market and higher export volumes along with cost optimization initiatives taken by the management, the company said in a stock filing on Tuesday.
Increased usage of local coal, use of multiple types of alternative fuels, increase in own power generation to mitigate the 35% increase in power tariffs and optimization of fixed costs contributed towards achieving the overall results, it said.
| Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Jun 24 | Jun 23 | % Change | |
| Sales | 20,626,105 | 16,161,918 | 27.62% |
| Cost of sales | (13,155,636) | (9,802,961) | 34.20% |
| Gross Profit/ (loss) | 7,470,469 | 6,358,957 | 17.48% |
| Administrative Expenses | (388,558) | (246,806) | 57.43% |
| Selling And Distribution Expenses | (728,348) | (2,282,556) | -68.09% |
| Share Of Profit / (Loss) | 0 | 2,313 | – |
| Other Income | 167,275 | 343,011 | -51.23% |
| Other Operating Expenses | (246,352) | (117,385) | 109.87% |
| Finance Cost | (1,662,850) | (1,135,302) | 46.47% |
| Profit/ (loss) before taxation | 4,611,636 | 2,922,232 | 57.81% |
| Taxation | (3,431,035) | (2,450,290) | 40.03% |
| Net profit/ (loss) for the period | 1,180,601 | 471,942 | 150.16% |
| Basic earnings/ (loss) per share | 0.48 | 0.32 | – |
Amount in thousand except for EPS
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Posted on: 2024-08-27T12:47:56+05:00
