AKD Research has published a review report on Fauji Cement Company Ltd. (FCCL)’s financial results for 4QFY25, noting that the results exceeded expectations due to higher profit margins. FCCL reported a profitability of PKR 3.9 billion (EPS: PKR 1.60), which is a significant increase of 3.3 times year-over-year, compared to PKR 1.2 billion (EPS: PKR 0.48) in the same period last year. This performance was better than anticipated because of higher margins. The company also announced a final cash payout of PKR 1.25 per share.
Revenue for 4QFY25 reached PKR 21.8 billion, up 6% year-over-year from PKR 20.6 billion in the same period last year. This increase was primarily driven by higher sales volumes. Importantly, the company’s offtake reached 1.38 million tons, a 7% year-over-year increase, largely attributed to a 45% rise in export sales.
- Gross margins improved by 2.99 percentage points year-over-year, reaching 39.1%, primarily due to lower coal prices and a decline in energy costs. Other income rose by 88% year-over-year, supported by increased short-term investments despite falling yields. Additionally, finance costs decreased by 36% year-over-year, totaling PKR 1.1 billion, thanks to lower financing rates.
- For the fiscal year 2025, cumulative earnings amounted to PKR 13.3 billion (EPS: PKR 5.43), a 62% increase from PKR 8.2 billion (EPS: PKR 3.35) in the same period last year.
- We maintain our ‘BUY’ stance on FCCL, supported by market share expansion, an efficient coal and power mix that sustains margins, and easing interest rates that provide further earnings support. Our target price for the stock by December 2025 is PKR 61 per share.
Courtesy – AKD Research
