Fauji Cement posts 20.8% increase in quarterly profit

Fauji Cement Company Limited (FCCL) posted a net profit of PKR 2.14 billion for the quarter ended March 31, 2025, marking a 20.8% increase from PKR 1.77 billion in the same quarter last year. Earnings per share (EPS) rose to PKR 0.87 from PKR 0.72 a year earlier, in line with market expectations.

The company’s net revenue inched up 1% to PKR 19.3 billion, driven primarily by a 4% rise in local dispatches, while retention prices remained unchanged. Gross margins improved to 32%, up from 28% in the same period last year.

FCCL attributed the gain to higher sales, optimized pricing strategies, and cost-cutting measures, including local PP bag production, increased reliance on domestic coal, and alternative fuel usage.

The company also noted reductions in power costs through increased in-house generation and fixed-cost optimization.

Despite easing inflation and stable sales volume, operating expenses climbed 14% to PKR 1.5 billion compared with the previous year. Sequentially, FCCL reported a 47% decline in earnings from the previous quarter, citing a 20% drop in cement dispatches and a 39% increase in finance costs.

For the nine-month period ending March 31, FCCL’s cumulative profit surged 34% to PKR 9.4 billion. Cement dispatches for the fiscal year-to-date stood at 3.99 million tons, up 6% from 3.79 million tons in the same period last year.