Increased capacity boosts Fauji Cement's nine-month profit, Pakistan

Pakistan-based cement producer Fauji Cement Company reported a 26 per cent rise in volumes for the first nine months of FY13 boosted by its new production line.

Rising net retention prices helped the company record topline growth of 56 per cent to PKR11.6bn against PKR7.5bn in the comparative period of last year. The company said that revenue per ton rose by 24 per cent to PKR6311 compared to PKR5082/t during the same period of the previous year.

The company achieved sales of 1.85Mt in the nine month period to the end of March 2013 compared to 1.46Mt in the same period of last year.  Capacity utilisation was 72 per cent during the nine months based on available capacity of Line II) compared to  66 per cent in the 9MFY12. Local sales rose 32 per cent with sales amounting to 1.47Mt compared to 1.11Mt in the same period of last year. Exports rose six per cent to 0.38Mt compared to 0.35Mt in the year-ago period. Afghanistan continues to be the main export market for the company.

Clinker production during 9MFY13 was 1.698Mt, a rise of 14 per cent YoY. Cement production, meanwhile, increased by 24 per cent to 1.862Mt. In May 2011, Fauji Cement started a new 7200tpd line parallel to its existing kiln which was supplied by Polysius. The company has a total cement capacity of 3.4Mta.

In the third-quarter of FY13, the company posted a profit of PKR647m, compared to PKR242,877m in the quarter ending 31  March 2012.

On the domestic demand outlook, Lt Gen Muhammad Mustafa Khan, chairman, said: “Based on industry growth of four per cent achieved during the nine months [ended 31 March 2013] and keeping in view the start of the summer season, it is anticipated that he demand of cement in the domestic market will remain stable during fourth quarter of the current financial year.” He expects the biggest challenges in the fourth quarter to be the availability of electricity.