Fauji Cement Company Limited (FCCL) has closed its books for FY25 with a landmark achievement — a record-breaking profit of Rs13.3 billion, up 62% from last year’s Rs8.2 billion. This marks the strongest financial performance in the company’s history, powered by rising sales, fatter margins, and tighter cost control.
Profits Surge Across the Board
The cement maker’s earnings per share jumped to Rs5.43 from Rs3.35 a year earlier. The final quarter alone brought in Rs3.9 billion in profit (EPS: Rs1.60) — more than triple the figure from the same period last year, and 83% higher than the preceding quarter. Shareholders will also pocket a Rs1.25 per share cash dividend.
Sales Growth Anchored by Domestic Demand
Annual revenue climbed 11% to Rs89 billion, driven by a 6% boost in cement dispatches. The April–June quarter was particularly strong, with sales up 13% from the previous quarter to Rs21.8 billion, supported largely by robust local demand, according to brokerage Arif Habib Ltd.
Margins Hit Multi-Year Highs
FCCL’s gross margins expanded to 35.5% from last year’s 32.1%, thanks to a mix of higher selling prices, better production efficiency, and improved fuel and power sourcing. In the fourth quarter, margins touched 39.1%, a 290-basis-point improvement — a level not often seen in Pakistan’s energy-intensive cement sector.
Costs Kept in Check
Selling and distribution expenses dropped 11% year-on-year to Rs2.9 billion. Financing costs eased 10% to Rs4.7 billion over the year, with a dramatic 50% fall in Q4, reflecting the central bank’s recent interest rate cuts. The effective tax rate also declined to 38.1% from 46.4%, further lifting net earnings.
Capacity Expansion in the Pipeline
Looking ahead, the board has greenlit an expansion of the PP Bags Manufacturing Plant at Hattar to meet all in-house packaging needs. By producing its own cement bags, the company expects to shave off procurement costs and strengthen future margins.
With construction activity picking up pace and cost pressures easing, FCCL’s strong FY25 performance could set the tone for another robust year — provided demand momentum continues.
