Fauji Cement Company Limited (FCCL), one of the biggest cement manufacturers in the country, has announced its financial results for the nine months that ended on March 31, 2023 (9MFY23).
The company posted a profit after tax (PAT) of Rs. 6.96 billion in 9MFY23, up 30 percent compared to the PAT of Rs. 5.34 billion reported in the same period last year (SPLY).
During 3QFY23, the company posted a profit after tax of Rs. 1.88 billion, up 21.2 percent from Rs. 1.55 billion in SPLY.
The company’s net revenue arrived at Rs. 18.2 billion in 3QFY23 against Rs. 13 billion last year, up by 39.6 percent year-on-year (YoY). Meanwhile, the same metric rose by 35.1 percent YoY to Rs. 51.9 billion in 9MFY23.
Q3 saw a massive devaluation as the rupee fell from Rs. 227 to Rs. 284 against USD. As a result, the company booked an exchange loss of Rs. 800 million in the finance cost that relates to the Expansion Project’s financial liability, which can’t be capitalized as per IFRS.
Profitability was up 19 percent in Q3 compared to the same period last year, however, it was down 30 percent in Q3 versus Q2 due to lower dispatches, higher finance cost post capitalization of Nizampur expansion, and including the exchange loss impact as mentioned above.
The gross margins arrived at 26 percent in 3QFY23, higher than last year (3QFY22: 23.7 percent), as higher retention prices offset the impact of higher coal costs, the depreciation of the Pakistani Rupee, and augmented energy tariff, according to an FCCL stock filing.
Operating profit during 9MFY23 increased by 41.7 percent YoY to Rs. 12 billion. In 3QFY23, the operating profit of the company surged by nearly 60 percent from Rs. 2.59 billion last year to Rs. 4.13 billion.
During Q3, the finance cost of the company skyrocketed by 530 percent YoY to Rs. 1.61 billion. Conversely, the finance income decreased by 4.5 percent in 9MFY23 and 5.6 percent in Q3.
The company paid Rs. 806.9 million in taxes in Q3, 16 percent lower than Rs. 959.9 million paid in the corresponding period last year.
The company reported earnings per share (EPS) of Rs. 3 in 9MFY23 and an EPS of Rs. 0.77 in 3QFY23.
FCCL’s scrip at the bourse closed at Rs. 11.83, up 0.25 percent or Rs. 0.03 with a turnover of 406,500 shares on Wednesday.
Source: Pro Pakistani