Fauji Cement reports fall in profit by 63% in 1QFY20

Pakistan-based Fauji Cement Co Ltd (FCCL) has announced its financial results for 1QFY20 on 21 October. It posted a net profit after tax of PKR293m (US$1.87m), down 63 per cent YoY, compared to PKR801m earned in same quarter last year, says a filing of company to Pakistan Stock Exchange. The major factor responsible for this fall was the drop in sales to PKR4.2bn from PKR5.3bn during this accounting period.

The distribution and administrative expenses have also been increased to PKR52m and PKR109m during this period from PKR48m and PKR104m, respectively.

A local research house while commenting on results, attributed decline in 1Q profitability to lower dispatches (domestic and exports), lower retention prices, higher energy tariffs and an increased transportation cost.