Fauji Cement declares a profit of Rs.4.4 billion in Fiscal Year 2022. One of the largest cement producers, Fauji Cement Company Limited, has released its financial results for the fiscal year.
Profit for the company came in at Rs. 4.416 billion, up from Rs. 3.469 billion during the same time last year. FCCL announced a 12.5 percent bonus issue with 273 million shares to be issued along with the outcome (12.5 shares for every 100 ordinary shares).
The combined earnings of FCCL and Askari Cement Limited (ACL) have been declared by the firm, and the earnings per share have been calculated using the new post-merger share count of 2.2 billion shares. The preceding earnings are related to Fauji Cement, per a report by Arif Habib Limited.
FCCL and ACL sold a combined 5,656,000 tons during FY22, increasing the company’s net sales to Rs. 54.24 billion from Rs. 24.27 billion during the same time the previous year.
Despite a 19% YoY reduction in dispatches compared to the 6,974,000 tons sold the previous year, a strong increase in retention prices in the North increased industry revenue, according to a report by Arif Habib Securities.
Gross margins for FY22 were 27 percent, which is still within the range of our projected margins for FCCL. This indicates that both FCCL and ACL were able to raise cement prices during the reviewed period in order to offset cost pressures like increased coal costs, PKR depreciation, and higher energy tariffs.
The cost of financing the company has climbed to Rs. 1.2 billion, with the majority of that cost coming from ACL, as FCCL’s cost of financing in 9MFY22 was Rs. 76 million. Furthermore, the effective exchange rate was 62% in FY22 as opposed to 47% in FY21.
In FY22, the company’s earnings per share increased from Rs. 1.59 to Rs. 3.26.