AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Fauji Cement Company Ltd. (FCCL) reported a significant increase in its fourth-quarter fiscal year 2025 earnings, showcasing a profitability of PKR 3.9 billion, a threefold rise compared to the same period last year. The result exceeded expectations, attributed to improved margins. The company also declared a final cash dividend of PKR 1.25 per share.
FCCL’s revenue for the quarter reached PKR 21.8 billion, marking a 6% year-on-year increase, driven largely by higher sales volumes. The company’s total sales volumes rose by 7% year-on-year to 1.38 million, with export sales contributing a substantial 45% increase.
The company’s gross margins saw an improvement of 2.9 percentage points, reaching 39.1%. This was primarily due to a decrease in coal prices and reduced energy costs. Additionally, other income surged by 88% year-on-year, bolstered by higher short-term investments despite declining yields.
FCCL’s finance costs decreased by 36% year-on-year, amounting to PKR 1.1 billion, benefiting from lower financing rates. For the full fiscal year 2025, the company’s earnings totaled PKR 13.3 billion, reflecting a 62% increase from the previous year.
AKD Securities Limited maintains a ‘BUY’ recommendation for FCCL, citing factors such as market share growth, an efficient coal and power mix, and easing interest rates as key drivers for continued earnings support. The target price for December 2025 is set at PKR 61 per share.