Fauji Cement Company Limited (FCCL) announced its 2QFY19 financial result, posting a profit after tax (PAT) of PKR 1,023mn (EPS: PKR 0.74), up by 24% YoY as compared to a bottom-line of PKR 824mn (EPS: PKR 0.60) during SPLY. Alongside this, the company announced a dividend of PKR 0.75/share.
FCCL’s topline witnessed a dip of 7% YoY to PKR 5.1bn during 2QFY19 amid 15% decline in total offtake (0.77mn tons vis-à-vis 0.90mn tons), with drop in local offtake of 11% to 0.71mn tons.
Gross margins of the company widened by ~6ppts in 2QFY19 to 32% (2QFY18: 26%) given operationalisation of Line-II throughout the quarter vs. 2QFY18, tagged with higher retention prices.
Distribution costs exhibited a dip of 36% YoY to PKR 51mn amid 44% cut in exports.
The company booked effective taxation during the period under review at 29% vs. 28% in 2QFY18.