Karachi, February 19, 2021 (PPI-OT): Fauji Cement Company Limited: High retentions and low input prices drove 2QFY21 earnings up by 4.8xy/y to PKR 0.66/share
Fauji Cement Company Limited announced its financial result for 2QFY21 with a net profit of PKR 905mn (EPS: PKR 0.66), up by +4.8x y/y, as compared to PKR 189mn (EPS: PKR 0.14) reported in the same period last year. This brings 1HFY21 earnings to PKR 1,601mn as against PKR 482mn reported in the comparative period last year.
Net Sales of the Company increased by +15%y/y and +11%q/q during 2QFY21. This was largely driven by increase in sales volumes amid economic revival, higher retention garnered by during the period following price increase, reduced FED and lower discounts.
Gross margins of the company have increase massively to 25% as against 7% recorded in the comparative period and 22% in 1QFY21 following improved retentions and restricted costs structure.
The company has also approved setting up green field manufacturing plant to the tune of 2.05mn tons p.a. Currently the company is targeting financial closed by 31st March 2021.