JS Securities Limited – 1HFY15 EPS at Rs1.21, up 33% YoY

Karachi, February 16, 2015 (PPI-OT): Fauji Cement (FCCL) announced 1HFY15 results today, where the company posted earnings of Rs1,668mn (diluted EPS: Rs1.21), up 33% YoY. Earnings are slightly above JS Securities Limited’s estimates on the back of better-than-expected gross margins, clocking in at 35.2%, up 152bp YoY. The company also announced an interim payout of Rs1.0/share which is in-line with JS Securities Limited’s expectations.

In 2Q alone, earnings clocked in at Rs0.77/share, a growth of 59% YoY/ 77% QoQ. The improvement is led by (1) revenue growth of 10% YoY/ 15% QoQ, (2) gross margin improvement by 350bp YoY/ 619bp QoQ and (3) decline in financial charges by 77% YoY/ 78% QoQ.

JS Securities Limited maintains ‘Buy’ stance on the stock with a Target Price of Rs40/share.