Fauji Cement reports net profit worth Rs6.96bn in 9MFY23

April 19, 2023 (MLN): Fauji Cement Company Limited (FCCL) has registered a 30.35% YoY jump in profits that clocked in at Rs6.96billion (EPS: Rs3) for the nine-month period ended on March 31, 2023, compared to the profits of Rs5.34bn (EPS:2.3) in the corresponding period last year.
The significant improvement in the company’s earnings can be attributed to higher gross margins and net finance income.
Going by the financial statement of the company, the topline of the company surged by 35% YoY to stand at Rs52bn during 9MFY23, mainly due to higher retention prices.
This took the margins in 9MFY23 to 27.08% against 26.8% in 9MFY22 amid better margins in the first half on account of effective price hikes which remained sufficient to offset the impact of augmented cost pressures.
During the period under review, the finance cost of the company soared to Rs2.5bn, compared to Rs856mn in 9MFY22
The surge in finance cost is owing to higher interest rates, enhanced borrowings pertaining to the recent expansion of 2.05mn tons at Nizampur site, and exchange losses with regards to financial liability of the upcoming expansion at D.G. Khan site, a report by Sherman Securities noted.
On the taxation front, the company’s effective tax rate improved to 30.16% in 9MFY23 as opposed to 34% booked in the same period last year.




Profit and Loss Account for the nine months ended March 31, 2023 ('000 Rupees)






 


Mar-23


Mar-22


% Change




Revenue – net


           51,907,364


    38,407,914


35.15%




Cost of Sales


         (37,847,848)


  (28,110,960)


34.64%




Gross Profit


           14,059,516


    10,296,954


36.54%




Selling and distribution expenses


               (422,707)


        (404,812)


4.42%




Administrative Expenses


           (1,134,827)


        (958,323)


18.42%




Other expenses


               (632,693)


        (600,052)


5.44%




Other income


                 186,808


          173,226


7.84%




Operating profit


           12,056,097


       8,506,993


41.72%




Finance cost


           (2,509,963)


        (856,144)


193.17%




Finance income


                 434,056


          454,718


-4.54%




Net finance income/(cost)


           (2,075,907)


        (401,426)


417.13%




Share of loss of associate


                    (2,313)


             (3,629)


-36.26%




Profit before Taxation


              9,977,877


       8,101,938


23.15%




Taxation


           (3,010,138)


    (2,756,438)


9.20%




Profit for the period


              6,967,739


       5,345,500


30.35%




Earnings per Share – Basic and Diluted (Rs)


                        3.00


                 2.30


30.43%




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Posted on: 2023-04-19T14:54:27+05:00
The post Fauji Cement reports net profit worth Rs6.96bn in 9MFY23 appeared first on Mettis Global Link .