Fauji Cement Company Limited (PSX:FCCL)
3rd Quarter - March 2023
EPS: Rs. 0.77, declining over 19% on the average EPS of the last four quarters. Earnings took a hit due to an exchange loss booked in financial costs.
Cash dividend, nil.
The greenfield expansion at DG Khan is expected to be completed this year. The expansion project's financial liability, amounting to Rs. 800 million arising from exchange loss due to the devaluation of the Pak Rupee, has been booked into financial costs.
Management expects a further decline in cement sales due to the economic slowdown.
Sales: FCCL reported a sales revenue of Rs. 18,234 million for the quarter ended on 31st March 2023, which is a slight decrease of 3.87% from the previous quarter's sales of Rs. 18,973 million. However, on a year-over-year basis, sales have grown by 137.19% compared to the same quarter last year.
Gross Profit: The gross profit for the quarter was Rs. 4,730 million, which declined by 7.40% from the previous quarter's gross profit of Rs. 5,116 million. On a year-over-year basis, gross profit has increased by 142.35% compared to the same quarter last year.
Finance Cost: The finance cost for the quarter was Rs. 1,439 million, which is a significant increase of 262.22% from the previous quarter's finance cost of Rs. 397 million. On a year-over-year basis, the finance cost has increased by 900.69% compared to the same quarter last year. FCCL booked an exchange loss.
Profit After Tax: The profit after tax for the quarter was Rs. 1,888 million, which declined by 31.79% from the previous quarter's profit after tax of Rs. 2,764 million. On a year-over-year basis, profit after tax has increased by 52.87% compared to the same quarter last year.
When comparing the latest figures with the average of the last four quarters, we can see that the sales for the current quarter are slightly lower than the average sales of the last four quarters. The gross profit for the current quarter is also lower than the average gross profit of the last four quarters. The finance cost for the current quarter is significantly higher than the average finance cost of the last four quarters. Finally, the profit after tax for the current quarter is lower than the average profit after tax of the last four quarters.
FCCL is trading at a very low price-to-earnings ratio of 3.1 and a very low price-to-book ratio of less than half.