Fauji Cement Company Limited (PSX: FCCL) has announced its financial performance for the first half of fiscal year 2024. They reported a profit after tax of Rs5.27 billion, with earnings per share (EPS) at Rs2.15. This compares to a profit of Rs5.08 billion and EPS of Rs2.25 in the same period last year.
The company’s total revenue increased by 19.83% year-on-year to Rs40.35 billion from Rs33.67 billion in the same period last year. Although the cost of sales also rose by 17.32% year-on-year, it didn’t increase as much as the revenue did, resulting in a 25.59% year-on-year increase in gross profit to Rs12.86 billion in the first half of fiscal year 2024.
Gross margins slightly improved to 31.87% from 30.41% in the same period last year. Other income during the review period surged by 2.64 times year-on-year to Rs199.94 million from Rs75.61 million in the same period last year.
However, there was an increase in selling and distribution expenses by 39.50% year-on-year, reaching Rs1.64 billion, and other expenses rose by 23.42% year-on-year to Rs575.05 million during the review period.
The company’s net finance cost drastically increased by 3.15 times year-on-year to Rs2 billion from Rs636.64 million in the same period last year, primarily due to higher interest rates. On the tax front, the company paid higher taxes worth Rs2.82 billion compared to Rs2.2 billion in the corresponding period of the previous year, showing an increase of 28.17% year-on-year.
Unconsolidated (un-audited) Financial Results for half year ended 31 December, 2023 (Rupees in ‘000)
| Dec ’23 | Dec ’22 | % Change | |
|---|---|---|---|
| Sales | 40,351,754 | 33,673,054 | 19.83% |
| Cost of sales | (27,493,466) | (23,434,550) | 17.32% |
| Gross Profit | 12,858,288 | 10,238,504 | 25.59% |
| Selling and distribution expenses | (1,639,519) | (1,175,297) | 39.50% |
| Administrative expenses | (741,247) | (751,420) | -1.35% |
| Share of loss of associate | – | (2,313) | – |
| Other Income | 199,940 | 75,611 | 164.43% |
| Other Operating Expenses | (575,053) | (465,944) | 23.42% |
| Net Finance Cost | (2,004,693) | (636,644) | 214.88% |
| Profit before taxation | 8,097,716 | 7,282,497 | 11.19% |
| Taxation | (2,823,852) | (2,203,176) | 28.17% |
| Net profit for the period | 5,273,864 | 5,079,321 | 3.83% |
| Basic earnings per share | 2.15 | 2.25 | – |
