Fauji Cement’s earnings surge 67%

Reports Rs2.77 billion in earnings in Jul-Dec.

KARACHI: Fauji Cement (FCCL) announced a net profit of Rs2.77 billion in the first six months (Jul-Dec) of fiscal year 2015-16 (1HFY16), up a significant 67% compared to the same period of last fiscal year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs2.09 compared to an EPS of Rs1.25 in the period under review.



In the second quarter, the company posted a net profit of Rs1.67 billion (EPS of Rs1.21), up 52% quarter on quarter from preceding quarter profit of Rs1.1 billion (EPS of Rs0.83).

The company also announced interim cash dividend of Rs1.75 per share (2QFY15: 1.00/share).

On Tuesday, PSX 100-Index closed on 31,673, down 254 points or 0.8% while Fauji Cement share closed at Rs39.66, down just 0.05%.

The company witnessed a 24% quarter on quarter rise in dispatches (751,000 tonnes in 2QFY16) owed to improved domestic/export demand (up 24% and 26%, respectively), coupled with stable cement prices in the north region of the country, resulting in a 27% sequential growth in turnover.

Gross margins expanded by 600 basis points during 2QFY16 to 48%, in contrast to 43% in 1QFY16 due to lower average coal prices which dipped 8.7% quarter on quarter in 2QFY16 along with contracting fuel costs amid dwindling oil prices. While 1HFY16 gross margins rose 11 percentage points to 46%.

The selling and distribution expenses escalated by 57% quarter on quarter to Rs58 million.

Published in The Express Tribune, February 17^th,  2016.

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