April 18, 2019 (MLN): Fauji Cement Company Limited (FCCL) has posted Profit after Tax of Rs. 2.4 billion (EPS: Rs. 1.77) for the nine months ended March 31, 2019, indicating a growth of 15% as compared to the corresponding period of last year.
The profitability improved on the back of commencement of the company’s major line resulting in lower cost of production. As a result, the gross margins improved by 11%. Moreover, a significant decline in coal prices as well as higher retention price during the out-going quarter further alleviated the gross margins.
Decline in distribution costs, led by a cut in exports, relieved some pressure off the bottom-line earnings. Similarly, decline in finance costs by 38% provided additional respite to the financial stability of the company.
It is hard to say whether the company met market expectations or not, since all the major brokerage houses presented varying projections. However, the forecast that was closest to the actual results was given by BIPL Securities.
Profit and loss account for the nine months ended March 31 2019 (Rupees'000) | |||
|---|---|---|---|
| Mar-19 | Mar-18 | % Change |
Turnover – net | 15,644,101 | 15,814,059 | -1.07% |
Cost of sales | -11,498,084 | -12,085,723 | -4.86% |
Cross profit | 4,146,017 | 3,728,336 | 11.20% |
Distribution cost | -183,482 | -192,055 | -4.46% |
Administrative expenses | -294,834 | -272,983 | 8.00% |
Other operating expenses | -254,894 | -227,954 | 11.82% |
Finance cost | -75,248 | -120,521 | -37.56% |
Other income | 121,283 | 71,690 | 69.18% |
Profit before taxation | 3,458,842 | 2,986,513 | 15.82% |
– Current | -1,122,490 | -892,568 | 25.76% |
– Deferred | 103,922 | 28,221 | 268.24% |
Income tax expense | -1,018,568 | -864,347 | 17.84% |
Profit for the period | 2,440,274 | 2,122,166 | 14.99% |
Earnings per share – basic & diluted (Rupees) | 1.77 | 1.54 | 14.94% |
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