KARACHI: Fauji Cement Company Limited (FCCL) announced a profit of Rs609 million for the quarter ended September 30, down by a significant 45% compared with Rs1.1 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) decreased to Rs0.44 from an EPS of Rs0.83 in the period under review.
The KSE 100-Index closed at 39,872, down 114 points or 0.29% on the last weekly day of trading. However, FCCL’s share price increased to Rs34.58, up 3% from Rs33.56.
The company also announced its result for full fiscal year 2016 in which it posted a net profit of Rs5.37 billion, up 30% compared to the profit of Rs4.12 billion in the last year.
“The results exceeded expectations because the company did not book the impairment charge for cement silo and mill. Moreover, it announced final dividend of Rs1, taking fiscal year 2016 pay-out to Rs2.75,” JS Research commented in its report.
It is pertinent to mention that in May this year, the company suffered huge losses when its raw meal silo structure that contains about 25,000 tons of raw material collapsed, which also damaged the coal mill area of (production) line-2.
On the other hand, in the first quarter of fiscal year 2017, decline in earnings was anticipated given that FCCL continued to buy clinker from neighbouring cement companies in May, the report added.
Analysts say the major miss in the announced results came from impairment charges because the company completely avoided talking about the incident.
Published in The Express Tribune, October 29th, 2016.