April 23, 2021 (MLN): Fauji Cement Company Ltd (FCCL) announced 9MFY21 results today wherein the company posted a 9.6x increase in profits to Rs2.6bn (EPS Rs1.89) against Rs271.8mn (EPS Re0.2) in the corresponding period last year.
The upsurge in profitability can be attributed to higher cement retention prices increase in dispatches amid strong local demand
During the period, FCCL’s topline grew by 30%YoY on the back of higher retention prices and better volumes, owing to improving fundamentals of the overall cement sector.
The gross margin has risen to 26%, up by a staggering 19ppts YoY. This is attributable to higher retention prices amid discontinuation of discounts and slightly lower variable costs due to lower energy prices.
Operating cost increased by 50% YoY during the period primarily due to higher other expenses. On the flip side, finance cost has been nearly wiped off to Rs44.2mn, declined by 60%YoY due to lower interest rates.
The other major highlights include, FCCL booked effective tax rate of 35% vs 1% in 9MFY20, and Other income has increased by 2.9x YoY to Rs107.9mn
|
Profit and Loss Account for the nine months ended March 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Turnover – net |
17,528,386 |
13,481,638 |
30.02% |
|
Cost of Sales |
(13,047,910) |
(12,603,718) |
3.52% |
|
Gross Profit/ (loss) |
4,480,476 |
877,920 |
410.35% |
|
Distribution Cost |
(141,799) |
(151,977) |
-6.70% |
|
Administrative Expenses |
(371,236) |
(360,602) |
2.95% |
|
Other Operating Expenses |
(276,862) |
(14,445) |
1816.66% |
|
Other income |
107,990 |
36,841 |
|
|
Operating profit |
3,798,569 |
387,737 |
879.68% |
|
Finance Cost |
(44,214) |
(112,286) |
-60.62% |
|
Profit/(loss) before Taxation |
3,754,355 |
275,451 |
1262.98% |
|
Taxation |
(1,143,545) |
(3,644) |
31281.59% |
|
Profit/(loss) for the period |
2,610,810 |
271,807 |
860.54% |
|
Earnings/(loss) per Share – Basic and Diluted (Rs) |
1.89 |
0.20 |
845.00% |
Copyright Mettis Link News
40844
