Fauji Cement Co Ltd (FCCL) reported its highest-ever annual earnings in FY25, with profit rising 62 per cent YoY to PKR13.3bn (US$47m). The company posted PKR3.9bn profit in 4QFY25, a 3.3 times increase compared to PKR1.2bn in the same quarter last year, according to AHL Research. FCCL declared a final dividend of PKR1.25 per share, up from PKR1.0 in FY24.
Cement dispatches grew 5.7 per cent YoY to 5.37Mt, led by a 5.5 per cent rise in local sales to 4.81Mt and a 7.7 per cent increase in exports to 0.56Mt. Capacity utilisation eased to 51 per cent in FY25 but rebounded to 57–58 per cent in 1QFY26, still above industry average.
Retention prices remained between PKR15,500–16,000/t for local sales and PKR10,500 for exports. FCCL remains the largest cement exporter to Afghanistan and is exploring new export markets in Sri Lanka and Bangladesh via sea routes.
On the cost side, the company used a fuel mix of 75 per cent local and 25 per cent Afghan coal, with prices ranging from PKR 35,000–39,000/t. Power needs were met through 41 per cent grid supply and 59 per cent in-house generation, supported by an additional 15MW of solar capacity installed in FY25.
Royalty costs surged from PKR250/t to PKR1232 following a switch to a six per cent ex-factory price mechanism.
FCCL also commissioned a polypropylene bag manufacturing plant in Hattar with a capacity of 72 million bags per year, meeting up to 95 per cent of packaging needs and saving PKR4 per bag.
Looking ahead, management projects FY26 demand growth of 4–5 per cent locally and 8–9 per cent including exports.
By Abdul Rab Siddiqi, Pakistan
