FCCL is expected to announce its 3QFY24E results on Apr 23rd, wherein we expect the company to post NPAT of PkR1.8bn (EPS: PkR0.73) vs. earnings of PkR2.7bn (EPS: PkR1.1) in the quarter before (↓33%QoQ), primarily attributed to gross margin contraction. The company’s topline is expected to clock in at PkR19.7bn, down by 1.7%QoQ, with the decline attributed to a 4% quarterly drop in offtakes (1.19mn tons vs. 1.24mn tons in 2QFY24).

Gross margins are expected to contract by 3.8ppts to 28.9%, with the depreciation charge for new expansion expected to contribute to the contraction. Additionally, finance costs are projected to increase by 32.7%QoQ due to a rise in the ST loans. 9MFY24 earnings are expected to reach PkR2.9/sh, a 1.3%YoY increase from PkR2.8/sh in SPLY, due to higher gross margins.

Courtesy – AKD Research.