Fauji Cement Announces Record Profits and Expansion Amid Market Challenges

Karachi: Fauji Cement Company Limited (FCCL) has reported a record after-tax profit of Rs 8.2 billion for the fiscal year ending April 2024, marking a significant achievement despite a 5% decline in domestic cement demand. This financial uplift is attributed to heightened operational efficiencies and strategic cost-reduction initiatives.

According to information available from the Pakistan Stock Exchange (PSX), the company’s resilience is evident in its overall cement sales, which have increased by 5% year-on-year, with a notable 24% rise in exports. These results highlight FCCL’s robust business model and its ability to adapt to volatile market conditions, including fluctuating commodity prices and energy costs.

A major milestone for FCCL this year was the successful commissioning of a Greenfield Cement Manufacturing Plant at DG Khan, which was completed in a record time of 13 months. This expansion increases FCCL’s daily production capacity by 6,500 tons, bringing its total annual capacity to 10.6 million tons and reinforcing its position as the third-largest cement producer in Pakistan.

In addition to capacity expansion, FCCL has made significant strides in sustainability. The company enhanced its solar captive capacity by 12.5 MW, reducing its dependence on the national grid. Plans are underway to further boost this capacity by an additional 15 MW, which will lower power costs, increase the renewable energy footprint, and reduce carbon emissions.

Governance at FCCL remains strong, with the establishment of several committees, including Audit, HRandR, ESG, and Investment Committees as per the Listed Companies (Code of Corporate Governance) Regulations 2019. The newly formed ESG Committee is particularly noteworthy, focusing on environmental sustainability and social responsibility while supporting education, vocational training, healthcare, and various social programs.

As FCCL continues to navigate through challenges and opportunities, its strategic direction, governance framework, and commitment to innovation are expected to drive sustainable success and corporate performance.

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