Fauji Cement posts 51% YoY profit growth

KARACHI: Fauji Cement Company Limited (FCCL) announced its financial results for the second quarter of fiscal year 2025 (2QFY25), posting a robust profit of Rs4.02 billion (EPS: Rs1.64), marking a 51 per cent year-on-year (YoY) increase.

According to an analyst at Topline Securities, the earnings exceeded industry expectations, primarily driven by higher-than-anticipated gross margins. The company’s net revenue surged by 24 per cent YoY and 8.0 per cent quarter-on-quarter (QoQ) to Rs24.89 billion, benefiting from increased total dispatches. Domestic dispatches grew by 17 per cent YoY and 14 per cent QoQ to 1.33 million tons, while export dispatches rose 42 per cent YoY but saw a slight 2.0 per cent QoQ decline to 0.16 million tons.

Gross margins improved to 36 per cent in 2QFY25 from 33 per cent in the same period last year, supported by a higher share of domestic dispatches, a better renewable energy mix and lower fuel costs. Finance costs increased by 4.0 per cent YoY to Rs1.05 billion due to expenses related to recent plant expansion. The effective tax rate for the quarter stood at 38 per cent, in line with the previous quarter but up from 35 percent in 2QFY24.

Despite the strong financial performance, FCCL did not declare a cash dividend for the quarter, in line with market expectations.