AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Fauji Cement Company Ltd. (FCCL) has released its financial results for the first quarter of fiscal year 2026, revealing a slight increase in profitability. The company reported earnings of PkR3.3 billion, equivalent to an earnings per share of PkR1.34. This marks a 1% rise compared to the same period last year, when earnings stood at PkR3.2 billion (EPS: PkR1.32).
The marginal growth in earnings was attributed to a 2% increase in revenue, which reached PkR23.4 billion. This was primarily driven by a 13% rise in offtakes, though it was partially offset by a 10% decline in retention prices.
FCCL’s dispatches increased notably, with a total of 1.50 million units, reflecting a 13% rise from the previous year. This uptick was largely fueled by a significant 62% increase in export sales.
However, the company’s gross margins saw a decline of 2.8 percentage points, settling at 31.5%. This decrease was mainly due to an increase in royalty rates in the Khyber Pakhtunkhwa region.
In contrast, other income showed a 30% increase, bolstered by higher short-term investments, which surged 2.6 times despite lower yields.
The earnings report, while showing a slight upward trend, fell short of analysts’ expectations, primarily due to lower-than-anticipated margins. The company’s performance will be closely monitored as it navigates the challenges and opportunities in the coming quarters.