Fauji Cement Co Ltd has published a comprehensive financial report for the period ending in the first half of FY26. The company earned a net revenue of PKR47,353m (US$169.2m), compared to PKR47,844m in the same period last year. The decrease in revenue is mainly due to lower cement prices and reduced export sales volumes. The company earned a profit after tax (PAT) of PKR7317m, compared to PKR7267m in the same period last year, representing a 1 per cent increase (YoY), with a net profit margin of 15 per cent.
The company's dispatches in the first half of FY26 were 2.98 Mt, compared to 2.81Mt in the same period last year; local sales increased by eight per cent (YoY), while export sales declined by nine per cent due to the Afghan border closure. Total sales reached 2.98Mt, a six per cent increase YoY. The gross profit margin remained at 33 per cent, compared to 35 per cent in the same period last year.
Despite rising local coal prices due to the border closure, the company managed to control costs (a two per cent increase over the same period last year) by enhancing its power generation capacity, utilising various alternative fuels, meeting nearly 100 per cent of packing bag requirements through self-production, and optimising fixed costs.
Outlook
Local dispatches are expected to stay stable over the next six months. Exports depend on the border situation, as Afghanistan remains the company's sole viable market due to the high logistics costs of sea shipping. Lower interest rates should help reduce financial charges. Management will continue its efforts to optimise costs to achieve the best possible results.
By Abdul Rab Siddiqi, Pakistan
