One of the largest cement producers in the nation, Fauji Cement Company Limited (FCCL), has released its financial results for the nine months that ended on March 31, 2023 (9MFY23).
In the third quarter of FY23, the company declared a profit after tax (PAT) of Rs. 6.96 billion, a 30% increase over the PAT of Rs. 5.34 billion reported in the same quarter of FY22 (SPLY).
The company reported a profit after tax for the third quarter of FY23 of Rs. 1.88 billion, up 21.2 percent from Rs. 1.55 billion in SPLY.
The company’s net sales increased by 39.6 percent year over year (YoY) to Rs. 18.2 billion in the third quarter of FY23 from Rs. 13 billion the previous year. The same indicator, however, increased by 35.1 percent YoY to Rs. 51.9 billion in 9MFY23.
The rupee had a significant devaluation in Q3, going from 227 to 284 against the USD. As a result, the Expansion Project’s financial liability could not be capitalised in accordance with IFRS, and the company recorded an exchange loss of Rs. 800 million in the finance cost.
Profitability increased by 19% in the third quarter compared to the same time last year, but it decreased by 30% from the second quarter due to reduced dispatches, higher financing costs following the capitalization of the Nizampur expansion, and the aforementioned exchange loss impact.
According to an FCCL stock filing, higher retention prices offset the effects of higher coal costs, the depreciation of the Pakistani Rupee, and increased energy tariffs, bringing the gross margins in the third quarter of FY23 to 26%, up from the third quarter of FY22’s 23.7%.
Operating profit increased to Rs. 12 billion during 9MFY23 by 41.7 percent YoY. The company’s operating profit increased by about 60% in the third quarter of FY23, from Rs. 2.59 billion to Rs. 4.13 billion.
The company’s financial costs increased dramatically in Q3 by 530 percent year over year to Rs. 1.61 billion. On the other hand, the finance income dropped by 5.6 percent in Q3 and 4.5 percent in 9MFY23.
