FCCL announced financial results for FY22, wherein the company posted a Profit after tax of Rs7,113 (EPS: 3.26/share) versus PAT of Rs3,471 (EPS: 2.52/share unadjusted) in FY21. During 4QFY22, the company recorded PAT of Rs.3,049mn versus PAT of Rs.861mn last year. The amalgamation of FCCL with Askari Cement has resulted in an earnings dilution of Rs. 0.81/share in 4QFY22.
Along with the results the company also announced bonus shares at 12.5%.
FCCL’s topline recorded an impressive growth of 1.2x YoY during FY22 and 3.6x YoY in 4QFY22. The growth in profitability is due to higher retention prices despite 6% YoY decline in volumetric sales to 3.28mn tons in FY22.
Gross margins of the company rose 2% YoY to 27% in FY22 as the company’s price per bag more than offset the impact of higher cost of production due to surge in coal costs along with higher energy tariffs. Margins during 4QFY22 increased to 25% versus 23% SPLY as MRP per bag was increased by ~40% YoY.
Finance costs of FCCL rose 9.9x YoY during FY22 due to increased borrowings by the company along with higher policy rate.
Effective tax rate for the company clocked in at 38% in FY22 versus 32% SPLY, due to the imposition of supertax on FY22 profitability. While the company recorded 48% effective taxation during the quarter ended.
Courtesy- AHCML Research