Fauji Cement recorded a profit-after-tax of Rs1.77 billion in the third quarter of FY24, ending on March 31, 2024, marking a 6% decline from Rs1.89 billion in the corresponding period of the previous year, primarily due to increased finance and taxation costs.
During a meeting held on Tuesday, the Board of Directors (BoD) assessed the company’s financial performance for the period ending March 31, 2024.
According to the latest financial statements, the company’s Earnings per Share (EPS) dropped to Re0.72 compared to Re0.77 in the same period of the previous year.
Fauji Cement saw a nearly 4% rise in its net revenue, reaching Rs19.05 billion, compared to Rs18.23 billion reported in the preceding year.
Conversely, the cost of sales saw a 6% increase to Rs13.7 billion in 3QFY24, up from Rs12.9 billion in the previous year.
As a result, the gross profit remained relatively steady at Rs5.35 billion, compared to Rs5.36 billion. However, the company’s profit margin decreased to 28% in 3QFY24, down from 29% in the same period last year.
Industry dispatches for the first nine months of FY24 totaled 34.50 million tons, a 3% increase year-on-year (YoY) from 33.60 million tons in the same period last year (SPLY). While domestic sales decreased by 4%, export sales surged by 68%, primarily driven by sea exports, which became more feasible due to currency devaluation and lower imported coal prices for companies in the South.
Meanwhile, Fauji Cement’s dispatches during the first nine months of FY24 reached 3.79 million tons, up 1% YoY from 3.76 million tons in SPLY.
Quarterly, the company’s finance cost rose from Rs1.44 billion to Rs1.57 billion, marking a yearly increase of over 9%.
Consequently, the cement maker’s profit before tax (PBT) declined to Rs2.65 billion in 3QFY24, compared to Rs2.69 billion in SPLY, a decrease of 2%.
Despite the lower PBT, Fauji Cement incurred higher taxes amounting to Rs877 million in 3QFY24, a 9% increase from Rs807 million in SPLY.
