Fauji Cement 9M profit drops 88%

Pakistan-based Fauji Cement Co Ltd (FCCL) saw its 9MFY19-20 profit, for the period ended 31 March 2020, fall 88 per cent to PKR271m (US$1.7m) when compared with the year-ago period as sales declined due to the impact of COVID-19.

The company’s topline contracted by 25 per cent YoY to PKR3.93bn in the 3QFY19-20 as dispatches shrank by two per cent to 706,000t and prices softened. Domestic sales fell by 10 per cent YoY to 623,000t, according to Pakistani new service The News.

The 3Q results led to a 14 per cent drop in 9M sales as lower prices offset the four per cent growth in deliveries, which rose to 2.35Mt from 2.25Mt in the 9MFY19-20. It also reported a higher distribution cost of PKR152m against PKR 144.24m in 9MFY19, while administrative expenses surged at PKR360.6m compared to PKR295m in corresponding period last year. The financing cost has also doubled during this period. Gross margins fell to 6.5 per cent in the 9MFY19-20 when compared with 26.5 per cent in the year-ago period.

FCCL is situated at Fateh Jang in the Punjab province of Pakistan. The plant has two production lines with a total cement capacity of 3.433Mta.