Aided by higher prices, FCCL profits surge 279%

Company announces final cash dividend of Rs1.25 per share.

KARACHI:

Fauji Cement Company Limited has announced profit of Rs2.09 billion and earnings per share of Rs1.42 in financial year 2012-13, up 279% over earnings of Rs553 million and EPS of Rs0.29 a year earlier.

The company declared a higher-than-anticipated final cash dividend at Rs1.25 per share, according to the financial results sent by the company to the Karachi Stock Exchange on Wednesday.

Revenues grew 39% to Rs15.97 billion because of higher cement prices in FY13 over FY12 and a 17% increase in sales to 2.5 million tons following capacity expansion of its plant, said Global Research in a report.

On a quarterly basis, the company saw its earnings fall 19% to Rs526 million in the fourth quarter compared to the previous quarter.

Revenues rose 6% quarter-on-quarter on the back of a 2% increase in cement prices to Rs464 per bag and a 4% improvement in demand, the research house said.

In the quarter, gross margins dropped three percentage points to 30% compared with 33% in the third quarter and 35% in the second quarter.

The lower margins were the result of gas shortage for captive power plants and rising electricity tariffs, though coal cost was declining, Global Research said.

Apart from this, higher international and local freight charges were also expected to have increased final cost for the company’s coal inventory, it added.

The company’s finance cost fell 17% year-on-year to Rs1.5 billion, aided by lower rupee depreciation in FY13 when the currency slid 5.2% compared to 9.9% in FY12.

Published in The Express Tribune, August 22^nd 2013.

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