Corporate results: Fauji Cement records Rs1.67b profit in 1HFY15

Growth resulted from high primary margins, low finance cost

KARACHI:

Fauji Cement Company has announced a net profit of Rs1.67 billion for the first half ended December 2014 (1HFY15), up 33% compared to Rs1.25 billion in the same period of previous year.

Earnings per share (EPS) remained at Rs1.25 compared to Rs0.94 in the first half of previous year.

Along with the results, the company announced an interim cash dividend of Rs1 per share. The earnings growth resulted from higher primary margins and lower financial charges, Global Research reported on Monday.

The earnings surged 77% quarter-on-quarter (QoQ) to Rs1.06 billion or an EPS of Rs0.80 during the second quarter of fiscal year 2015 because of the increase in margins and lower finance cost.

Revenues increased 9% year-on-year (YoY) to Rs8.99 billion during the first half because of a 5% increase in volumetric sales to 1.24 million tons and a higher proportion of domestic sales (82% against 80% during 1HFY14).



On a quarterly basis, the revenues increased 15% QoQ to Rs4.82 billion during the second quarter of fiscal year 2015 because of a 14% increase in volumetric sales.

The margins of the company improved by 1 percentage point to 35% in the first half because of higher volumetric sales. They improved by 6 percentage points QoQ to 38% because of higher cement off-take, improved sales mix and a likely decline in net energy costs.

Financial charges fell 39% to Rs402 million during 1HFY15 because of a 22% YoY decline in outstanding debt to Rs8.3 billion.

The finance cost plummeted 78% QoQ to Rs72 million during the second quarter because of an estimated exchange gain of Rs72 million against an exchange loss of Rs172 million registered during the first quarter of fiscal year 2015.

Published in The Express Tribune, February 17^th, 2015.

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