Fauji Cement earnings up by 136 per cent

Fauji Cement earnings up by 136 per cent
Published: 04 October 2006

Fauji Cement Company Limited has announced financial results for the year FY06, according to which the company posted earnings of Rs 1,203m, against previous year’s earning of Rs 510m, and earning per share (EPS) of Rs 3.25 as EPS Rs 1.38 in FY05 - a massive growth of 136 percent. 
During nine months (July-March) of FY06, the company posted EPS of Rs2.3 - a growth of 135 per cent. Huge growth in company’s profitability in FY06 was mainly due to 17 per cent growth in cement sales and better retention prices by the company. 
Atif Malik, an analyst at JS Research, said that it was due to this high retention prices by the company during the year that gross margins of the company stood at 51 percent in FY06 from 38 percent in FY05. 
Net sales of the company stood at Rs 4.29bn against Rs 2.84bn in FY05-a growth of 51 per cent-whereas its gross profits stood at Rs 2.19bn, increasing by a massive 103 per cent.