One of the world’s largest cement producers, Fauji Cement Company Limited, has released its financial results for the fiscal year ending June 30, 2023. The company earned Rs. 7.44 billion, up from Rs. 7.11 billion in the prior-year period. Shareholders of FCCL have not been promised any dividend payments at this time.
According to Arif Habib Limited, net sales in FY23 totaled Rs. 68 billion, up 25 percent year over year from the previous year. This was driven mostly by a significant increase in retention prices in the North.
Fauji Cement is gaining profits
The number of tonnes sent out decreased by 14% year-over-year when compared to the 5,640k tonnes sold in 2017; this loss was caused mostly by a 16% year-over-year dip in domestic offtake to a record low of 4,455k tonnes. On the other hand, when compared to the previous year, exports climbed by 38 percent year over year. Gross margins increased from 28.5 percent in SPLY to 30 percent in FY23 due to successive increases in retention pricing and improved coal management.
Net financing expenses increased to Rs. 3.1 billion in FY23 from Rs. 456 million in SPLY as interest rates and borrowings both increased. In FY23, due to super tax, the company’s effective tax rate was 39%. In FY23, the company posted a per-share profit of Rs. 3.16, up from Rs. 3.02 the previous year. On Tuesday, FCCL’s scrip at the market dropped 4.78 percent, or Rs 0.56, to close at Rs 11.16, with a volume of 8,250,000 shares.
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