Fauji Cement Company Limited, which is one of the biggest cement manufacturers, has announced its financial results for the quarter that ended on September 30 of the financial year 2022-23.
According to the company’s financial results, it posted a profit after tax (PAT) of Rs. 2.3 billion as compared to Rs. 2.1 billion in the same period last year (SPLY), up 10 percent year-on-year (YoY).
The earnings came in higher than market expectations mainly due to higher-than-expected gross margins.
Net sales of the company increased to Rs. 14.7 billion, which is up by 27 percent as compared to Rs. 11.57 billion on account of rising retention prices to Rs. 706 per bag versus Rs. 406 per bag in SPLY, up 74 percent, whereas the dispatches have declined by 27 percent to 1.04 million tons.
According to a report by Ismail Iqbal Securities, the gross margins of the company clocked in at 28.7 percent as compared to market projections of 19.5 percent, which is likely due to lower-than-estimated coal costs and synergy in operations. Regardless, the gross margins are still down compared to the 29.6 percent recorded in July-September FY22.
The finance cost of the company rose by 89 percent YoY to Rs. 415 million from Rs. 219 million, which can be attributed to an increase in debt levels and an increase in short-term borrowing costs.
The effective tax rate came at 30.2 percent versus 23.9 percent in SPLY.
Earning per share of the company clocked in at Rs. 0.94 in 1QFY23 as compared to Rs. 0.86 in 1QFY22.
FCCL’s scrip at the bourse was closed at Rs. 14.65, up by Rs. 0.06 or 0.41 percent, with a turnover of 5.31 million shares on Monday.
