Fecto Cement Q1 profit surges 180%

October 29, 2024 (MLN): Fecto Cement Limited's (PSX: FECTC) net profit soared 180.1% during the first quarter of FY25 as gross margins jumped.

Its shares surged 10% during intraday trade Tuesday.

The cement manufacturer recorded a profit after tax of Rs250.02 million [EPS: Rs4.98] during the quarter ending September 2024 compared to Rs89.25m [EPS: Rs1.78] in the same period last year (SPLY).

The company's revenue grew by 9.5% to Rs2.88bn as compared to Rs2.63bn in SPLY.

Moreover, the cost of sales fell 3.2%, improving the gross profit by 95.0% to Rs662.7m in Q1 FY25.

The gross margins rose to 23.0% as compared to 12.9% in SPLY.

During the period under review, other income fell by 46.2% to stand at Rs18.55m in Q1 FY25 as compared to Rs34.47m in SPLY.

On the expense side, the company's administrative expenses rose 19.2% from a year ago to Rs110.21m, selling and distribution expenses rose 34.0% to Rs35.89m, and other operating expenses rose 214.4% to Rs28.36m.

The company’s finance cost shrunk 28.8% and stood at Rs53.17m as compared to Rs74.66m in SPLY.

On the tax front, the company paid a higher tax worth Rs203.6m against an expense paid worth Rs82.17m in the corresponding period of last year, an increase of 147.8%.

This translates to an effective tax rate of 44.9% as compared to 47.9% in SPLY.

Amount in thousand except for EPS

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