Fauji Cement Company Limited (PSX: FCCL) has reported a profit after tax of Rs. 3.247 billion for the quarter ending September 30, 2024, marking a 24.2% increase from Rs. 2.614 billion in the same period last year. According to Arif Habib Limited, this represents FCCL’s highest-ever quarterly profit.
The company’s impressive performance is attributed to several strategic factors: increased retention prices, the use of local coal and alternative fuels, and a greater reliance on captive power generation. Despite the strong financial results, FCCL did not announce any dividend payouts for the period.
During the first quarter of FY25, FCCL’s net revenue rose to Rs. 22.9 billion, up 13% from Rs. 20.3 billion in the same period last year. The gross profit margin improved to 34.3%, compared to 31% previously.
In a brief commentary, FCCL attributed the improved gross margin to enhanced domestic sales, stable prices, and cost optimization measures. The increased use of local coal and various alternative fuels, along with a reduction in power costs through expanded solar power generation and fixed-cost optimization, contributed to the strong results.
The company reported earnings per share (EPS) of Rs. 1.32, up from Rs. 1.07 in the same period last year. At the time of filing, FCCL’s stock was trading at Rs. 33.85, an increase of 7.6% or Rs. 2.39, with 22.5 million shares traded on Friday.
