FCCL incurs losses of Rs 59 million despite presence of tax credit

September 9, 2020 (MLN): Fauji Cement Company Limited on Monday announced the financial results for the year ended June 30, 2020, which showed a Loss after tax figure of Rs. 59.3 million (LPS: 0.4), as opposed to earnings of Rs. 2.82 billion recorded last year.

The net revenue and the gross profits fell by 17% and 88% respectively, owing to a decline in the overall dispatches during the lockdown period, depreciation of local currency and lower retention prices.

According to IGI Securities, the non-operating profit showed a decline of 61% mainly due to presence of exchange losses.

The net finance cost incurred by the company showed a surge of 260% on the back of hike in the policy rate during the period under review.

Nonetheless, the tax credit of Rs. 113.8 million helped significantly in limiting the losses incurred by the company.

Financial Results for the year ended June 30, 2020 (Rupees'000)

 

Jun-20

Jun-19

% Change

Revenue – net

17,231,709

20,798,082

-17.1%

Cost of sales

(16,582,605)

(15,474,771)

7.2%

Gross profit

649,104

5,323,311

-87.8%

Other income

36,134

92,947

-61.1%

Selling and distribution expense

(204,344)

(210,335)

-2.8%

Administrative expense

(468,651)

(415,979)

12.7%

Other expenses

(567)

(326,689)

-99.8%

Operating profit

11,676

4,463,255

-99.7%

Net finance cost

(184,943)

(51,347)

260.2%

(Loss)/profit before tax

(173,267)

4,411,908

 

Income tax credit / (expense)

113,886

(1,587,610)

 

(Loss) / profit for the year

(59,381)

2,824,298

 

(Loss) / earnings per share

(0.04)

2.05

 

 

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Posted on: 2020-09-07T16:55:00+05:00

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