FCCL lays a strong foundation with 38% profit growth

February 25, 2025 (MLN): Fauji Cement Company Limited (PSX: FCCL) posted a net profit of Rs7.27 billion [EPS: Rs2.96] for the six-month period ended December 31, 2024, marking a 37.8% increase from Rs5.27bn [EPS: Rs2.15] recorded in the same period last year (SPLY).

The company’s revenue rose by 18.6% to Rs47.84bn, up from Rs40.35bn in SPLY, reflecting strong demand and improved pricing strategies.

Meanwhile, gross profit surged by 30.5% to Rs16.78bn from Rs12.85bn, as gross margins expanded due to cost efficiencies and stable sales prices.

During the period under review, other income soared by 93.5% to Rs386.96mn, compared to Rs199.94mn in SPLY, due to better returns on investments and financial gains.

On the expense front, administrative expenses increased by 14.5% to Rs848.87mn, and other operating expenses jumped 41.2% to Rs811.95mn.

Meanwhile, selling and distribution expenses dropped by 14.5% to Rs1.4bn, indicating optimized logistics and marketing costs.

The company’s finance cost rose 40.4% to Rs3bn, up from Rs2.14bn in SPLY, largely due to prevailing high-interest rates.

However, finance income surged by 338.2% to Rs595.75mn, offsetting part of the increased borrowing costs.

On the tax front, Fauji Cement paid Rs4.43bn in income tax, marking a 56.99% increase compared to Rs2.82bn in SPLY, translating to an effective tax rate of 37.9%.

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