Fauji Cement Company Limited (FCCL) has demonstrated resilience and strategic adaptability in navigating through challenges while achieving growth, as evidenced by its financial performance in the nine months of FY24. Despite encountering increased financial costs associated with expansion-related debt, the company managed to record a profit after tax of Rs7.04 billion, indicating a slight uptick from Rs6.97 billion in the same period last year (SPLY).
One of the key drivers of FCCL’s growth has been its sales revenue, which witnessed a significant uptick of 14.4% year-over-year, reaching Rs59.4 billion. Notably, export sales experienced a remarkable surge of 68%, attributed largely to sea exports facilitated by currency devaluation and lower imported coal prices in the Southern region. This highlights the company’s ability to capitalize on external market dynamics and adjust its sales strategy accordingly.
Despite a slight decline in domestic sales by 4%, the overall increase in industry dispatches by 3% reflects a positive market demand scenario. FCCL’s dispatches also saw a modest uptick of 1% year-over-year, reaching 3.79 million tons. This indicates the company’s effective market positioning and ability to maintain its share in a competitive industry landscape.
Furthermore, FCCL’s gross margins witnessed a significant improvement, rising to 30.66% from 27.09% in SPLY. This enhancement can be primarily attributed to better sales prices and cost optimization measures implemented by the management. The increased revenue from exports, coupled with currency devaluation, played a pivotal role in bolstering the company’s gross margins, underscoring its ability to leverage external factors to enhance profitability.
