PakStox Outlook

FCCL: Earnings Report Analysis 9 Months Ending March 2024 Fauji Cement Company Limited (FCCL) recently released its earnings report for the nine months ending March 2024. While EPS (earnings per share) showed a slight decrease compared to the same period last year (Rs. 0.72 vs Rs. 0.77), sales remained relatively stable. Overall, the report suggests stagnation in earnings growth. Gross profit margin also declined slightly compared to the previous quarter and last year, sitting at 28%. Similarly, EBIT in this quartet (earnings before interest and taxes) was substantially lower than the 2nd quarter of 2024 and slightly lower than the same quarter last year. Company Notes and Positive Signs However, the company's earnings release included some positive notes. The cement industry as a whole saw a 3% increase in dispatches for the nine months of FY24, reaching 34.50 million tons. This indicates continued growth in the market. FCCL itself also experienced some growth. The company's d...

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. Price (Rs.) 1 Month 6 Month 1 Year 11.85 2.16% -19.11% -30.29%

Fauji Cement:  On its way to become the third largest cement company. Has 3 plant locations. The recent addition of 2mn tons at Nizampur has taken the capacity to 8.4mn tons. Planned expansion at Dera Ghazi Khan of 2mn tons, is expected to commence operations by CY23 end. CapEx is estimated at Rs38bn financed with a Debt: Rs23bn & Equity: Rs15bn. Major portion with debt under TERF and LTFF arrangements. FCCL could only manage to secure Rs4bn under TERF and it will now not be able to avail LTFF rates for the upcoming expansion. This will have an impact of Rs800mn.  40% of the equipment import is remaining. FCCL fuel mix for 1HFY23: Afghan coal being 44% ,local coal  at 52-53% in the coal mix. Afghan coal prices are  around Rs52-55k/ton, while local coal is at Rs33-35k/ton. Landed cost for imported coal comes to around Rs60-62k/ton. current coal cost ia around Rs42-43k/ton compared to around Rs 38k/ton in 2QFY23. More at:  FCCL - Stock quote Pakistan Stock Ex...