Fauji Cement reports 30% leap in profit in 9MFY22-23

Pakistan’s Fauji Cement Company has reported a 30.4 per cent YoY increase in profit in the nine months ended 31 March 2023 (9MFY22-23). Profit over the period came in at PKR6.97bn (US$24.67m), up from PKR5.35bn in the same period a year earlier. The increase is being attributed to higher gross margins and net finance income, according to Mettis Link News.

Net revenue over the nine months came in at PKR51.9bn, up 35.2 per cent YoY, with better margins on the back of price hikes helping to offset higher cost pressures. Meanwhile, operating profit improved by 41.7 per cent to PKR12.06bn, and earnings per share advanced from PKR2.30 to PKR3, marking a 30.4 per cent YoY jump.

During the period under review, the company’s finance cost soared to PKR2.5bn, up 193.2 per cent from the PKR856m reported in the 9MFY21-22. According to Sherman Securities, this was due to higher interest rates and enhanced borrowings related to the company's expansion plans.