Fauji Cement Company Limited announced a net profit of Rs3.25 billion (Earnings Per Share: Rs1.32) for the quarter ending in September 2024, showing a significant increase of 24.2% compared to the same period last year. The company’s revenue also grew by 13%, reaching Rs22.96 billion. Their gross profit rose by 24.7%, totaling Rs7.88 billion.
The company’s positive results were driven by stronger domestic sales, stable pricing, and effective cost management. These factors helped the company improve its overall performance in a challenging market. However, there was a notable downside as finance costs increased sharply by 48.3%. This rise was primarily due to higher interest rates, which put pressure on the company’s expenses.
Additionally, Fauji Cement’s effective tax rate climbed to 38%, which reflects changes in tax regulations or financial performance impacting their overall tax obligations. Despite the challenges, the company’s shares experienced a boost, rising nearly 7% during intraday trading. This increase in share price indicates investor confidence in the company’s future prospects following these positive financial results.
