Fauji Cement Posts 38% Profit Growth in First Half of FY25

Fauji Cement Company Limited (PSX: FCCL) has announced its financial results for the half year ended on December 31, 2024, posting a profit after tax (PAT) of Rs. 7.26 billion, up 38 percent YoY compared to Rs. 5.27 billion in the same period last year. Along with the result, FCCL did not announce any dividend payouts to its shareholders for the period in review. Company’s dispatches in 1st half FY 25 were 2.81 million tons as compared to 2.58 million tons in SPLY; an increase of 9 percent (YoY). During 1st half of FY25, the Company earned a net revenue of Rs. 47,844 million as compared to Rs. 40,352 million in SPLY. FCCL said in a brief commentary that the increase in revenue is mainly attributable to higher dispatches and stable prices. Gross Profit margin improved to 35 percent as compared to 32 percent in SPLY. This is mainly ascribable to better sale prices and the outcome of cost optimization initiatives taken by the Management including Packing material cost reduction after the acquisition of the PP Bags Plant, higher usage of local coal, use of multiple types of alternative fuels, reduction in cost of power by increasing own power generation and optimization of fixed cost. FCCL also benefited from the decrease in Interest rates with the reduction in KIBOR, which came down with a reduction in Inflation and Policy rate by SBP during 1HFY25. FCCL posted earnings per share of Rs. 2.96 for 1HFY25 compared to an EPS of Rs. 2.15 in SPLY. At the time of filing, the company’s scrip at the bourse was Rs. 41.7, down 1.81 percent or Rs. 0.77 with 46.95 million shares on Tuesday.