Reports Rs2.77 billion in earnings in Jul-Dec. PHOTO: FAUJI CEMENT
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 17th, 2016.
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