Fauji Cement Posts Highest Ever Quarterly Profit of Rs. 3.2 Billion in Q1 FY25

Fauji Cement Company Limited (PSX: FCCL) has posted a profit after tax of Rs. 3,247 million for the quarter ended September 30, 2024, up 24.2 percent year-on-year compared to Rs. 2,614 million in the same period last year. According to Arif Habib Limited, this is FCCL’s highest-ever quarterly profit. This remarkable performance is attributed to several key factors: i) an increase in retention prices, ii) the use of local coal alongside other alternative fuels, and iii) greater reliance on captive generation. FCCL didn’t announce any dividend payouts to its shareholders for the period. During 1QFY25, the company earned a net revenue of Rs. 22.9 billion as compared to Rs 20.3 billion during SPLY; an increase of 13 percent (YoY). The Gross Profit margin increased to 34.3 percent as compared to 31 percent in SPLY. FCCL said in a brief commentary that the improvement in gross margin was due to improved domestic sales, stable prices and cost optimization initiatives taken by the management. Higher usage of local coal and multiple type of alternative fuels, reduction in cost of power by further enhancing solar power generation and optimization of fixed costs contributed towards achieving the overall results. The company posted earnings per share of Rs. 1.32 compared to an EPS of Rs. 1.07 in SPLY. At the time filing, FCCL’s scrip at the bourse was Rs. 33.85, up 7.6 percent or Rs. 2.39 with 22.5 million shares on Friday.