Fauji Cement Company Limited (PSX: FCCL) posted a net profit of Rs. 4.96 billion in the first quarter of fiscal year 2026-27, up 51 percent year-on-year but down 8 percent from the previous quarter.
Earnings per share reached Rs. 2.02, in line with expectations.
Net sales increased 11 percent year-on-year, supported by a 12 percent rise in domestic cement dispatches. However, total dispatches grew by 5 percent as exports to Afghanistan were disrupted following the closure of the Afghan border.
Gross margin improved to 36 percent, helped by higher cement retention prices and cost-control measures. These included the government’s incremental electricity consumption package and the company’s in-house production of polypropylene (PP) bags.
Distribution expenses rose 17 percent year-on-year, mainly due to higher transportation costs following an increase in oil prices.
Finance costs declined 42 percent quarter-on-quarter as the company repaid debt during the quarter. Long-term borrowings fell 10 percent, while short-term borrowings dropped 92 percent compared with the previous quarter.
The effective tax rate stood at 38 percent, slightly above 37.9 percent in the same period last year and significantly higher than 22.8 percent in the previous quarter.
