Fauji Cement Company Limited (FCCL) announced its financial result last week, wherein the company reported earnings of PKR 472mn (EPS: PKR0.19) in 4QFY23, down 73% YoY and 75% QoQ.
Lower than estimated earnings are attributed to higher than estimated selling and distribution expenses and effective tax rate. This takes full year FY23 earnings to Rs7,440mn (EPS: PKR 3.03) up 5% YoY majorly on the back of higher retention prices.
Topline of the company increased by just 2% YoY to clock in at PKR 16.1bn on the back of higher retention prices. However, on QoQ basis, sales declined by 11% due to lower cement dispatches.
FCCL local dispatches in 4QFY23 clocked in at 1.02mn tons, down by 20% YoY and 19%
QoQ. Moreover, exports increased by 16% YoY and 24% QoQ to clock in at 0.1mn tons.
• Company gross margins clocked in at 39% in 4QFY23 as compared to 33% in 4QFY22 and 26% in 3QFY23. We believe higher gross margin are due to decline in coal prices and better coal mix.
Finance cost rose massively to PKR 1,042mn due to higher Interest Rate scenario amid high Debt book.
| PKR mn | 4QFY23 | 4QFY22 | YoY | QoQ | FY23 | YoY |
| Sales | 16,162 | 15,835 | 2% | -11% | 68,069 | 25% |
| Cost of Sales | 9,803 | 10,669 | -8% | -27% | 47,651 | 23% |
| Gross Profit | 6,359 | 5,167 | 23% | 34% | 20,418 | 32% |
| Selling & Dist. Exp | 2,283 | 1,199 | 90% | NM | 2,705 | 69% |
| Admin Expense | 247 | 341 | -28% | -36% | 1,382 | 6% |
| Finance Cost | 1,042 | 54 | NM | -28% | 3,118 | 584% |
| Other Expenses | 117 | 209 | -44% | -30% | 750 | -7% |
| Other Income | 249 | 57 | 334% | 124% | 436 | 89% |
| PBT | 2,922 | 3,426 | -15% | 8% | 12,900 | 12% |
| Taxation | 2,450 | 1,659 | 48% | 204% | 5,460 | 24% |
| PAT | 472 | 1,767 | -73% | -75% | 7,440 | 5% |
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