Fecto Cement’s Strategic Expansion Fuels Impressive Sales Growth

Karachi: Fecto Cement Ltd (FECTC) held a corporate briefing today to discuss its financial performance for FY25 and the first quarter of FY26, as well as its future outlook. The company reported a significant increase in earnings per share (EPS) to Rs11.7 for FY25, marking a 63% year-on-year rise, primarily driven by an increase in gross margin. However, the company’s earnings saw a decline of 9% on a quarter-on-quarter basis, registering at Rs4.14 per share.

The briefing revealed that Fecto Cement achieved net sales of Rs3.6 billion in the first quarter of FY26, reflecting a 24% year-on-year increase. This growth was largely attributed to a 42.9% rise in dispatches, which elevated the company’s capacity utilization to approximately 98% for the quarter. The management credited this surge to its strategic expansion into alternative markets, such as Gilgit Baltistan, and expressed confidence in the sustainability of this trend.

In terms of energy composition, the company reported that its power mix for the first quarter consisted of 39% waste heat recovery, around 6% solar, and the remaining 54.9% from the grid, with the grid electricity costing between Rs31-32 per kilowatt-hour. Additionally, coal, with a gross calorific value of 6,500, is presently priced at Rs44,000-45,000 per ton.

Fecto Cement’s management highlighted that the market retail prices are approximately Rs1,400 per bag, although they vary by region. The company also noted a competitive advantage in raw material costs, which are notably lower than those faced by Punjab-based players. This advantage is due to sourcing from external suppliers not subject to the higher royalty charges in Punjab, resulting in raw material costs ranging from Rs600-800 per ton, compared to about Rs1,400 per ton for competitors in Punjab.

Furthermore, the company stated that it is not currently involved in any cases related to the Capital Development Authority (CDA).