Fauji Cement’s profits jump by 15% despite no change in sales revenue

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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Posted on: 2019-04-18T15:02:00+05:00

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