Fauji Cement Posts a 28% Decline in Profits

Fauji Cement Company Limited (FCCL) has posted a net profit of Rs. 616 million in the third quarter that ended on March 31 2019, down by 28% from Rs 854 million in the same period last year.

During the nine months, Fauji cement reported a growth of 13.21% to Rs 2.4 billion as compared with Rs 2.12 billion.

Overall, during the quarter, the sales turnover of the company was down by 6%, reported at Rs 5.21 billion against Rs 5.54 billion in the previous year due to the lower demand in the cement sector resulting in a 25% YoY fall in total dispatches during the 3Q. FCCL has recorded a drop in both local and export dispatches by 25%YoY and 18%YoY respectively.

The cost of sales also increased to Rs 4.11 billion against Rs 4.04 billion which made the gross profit decline by 27.33% to Rs 1.09 billion.

The company saw a decline in distribution costs, led by a cut in exports, relieved some pressure off the bottom-line earnings. The other operating expenses also saw a decline of 28%. Moreover the administrative expenses were posted Rs 102 million against Rs. 98.58 million in the previous year.

Similarly, a decline in finance costs by 53.07% to Rs 21.86 million provided additional respite to the financial stability of the company.

At the time of filing this report, FCCL’s shares at the bourse were trading at Rs 17.60, up by Rs 0.27, with a turnover of 870,000 shares on Friday.

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