Fauji Cement Co expected to post mixed financial results

According to AHL Research, Fauji Cement Co Ltd (FCCL) is scheduled to announce its financial result for 2QFY23-24 (October-December 2023) soon with an expected profit after tax of PKR2.347bn (US$8.39m) as compared to PKR2.764bn a year ago. This represents a fall of 15 per cent YoY. This will take the earnings for 1HFY23-24 (July-December 2023) to settle at PKR4.961bn compared to PKR5.079bn in 1HFY22-23.

Despite a seven per cent YoY decline in total dispatches in 2QFY23-24, the top line is projected to slightly rise by three per cent YoY to clock in at PKR19.499bn compared to PKR18.973bn in the same period last year, supported by an upswing in retention prices, according to the analysts. In addition, the reclassification of freight charges from cost of sales to distribution cost improved the gross margins. Finance cost during 2QFY23-24 is forecast to arrive at PKR1.450bn vs PKR397m in the year-ago period due to higher borrowing and elevated interest rates.