Fauji Cement Company Ltd. (FCCL) has announced its 3QFY25 financial results, with a net profit after tax (NPAT) of PKR 2.1 billion, translating to an earnings per share (EPS) of PKR 0.87. Here’s a breakdown of the company’s performance:

Key Highlights:

– Revenue: PKR 19.3 billion, down 22% quarter-over-quarter (QoQ) due to a 20% drop in volumes, but flat year-over-year (YoY).
– Gross Margin: 32.5%, down 3.3 percentage points QoQ due to a decline in retention prices.
– Distribution Costs: PKR 847 million, up 19% QoQ despite falling volumes.
– Finance Cost: PKR 1.6 billion, up 23% QoQ due to reliance on short-term borrowings.
– Effective Tax Rate: 39%, higher than the 33% recorded in the same period last year.

9MFY25 Performance:

– NPAT: PKR 9.4 billion, up 34% YoY.
– EPS: PKR 3.84, up 34% YoY.

Outlook:

Despite the weak 3qfy25 results, FCCL’s margins are expected to improve in the coming quarters due to the recent rise in cement prices and the decline in coal prices. AKD Research maintains a Neutral stance on FCCL with a target price of PKR 45 per share [Courtesy – AKD Research].