Fauji Cement Company Limited (FCCL) has posted a net profit of Rs. 3.29 billion for the first quarter of FY25, marking a modest increase of 1.2% compared to Rs. 3.25 billion earned in the same period last year. The company’s earnings per share (EPS) inched up to Rs. 1.34, indicating steady financial resilience despite ongoing challenges in the cement industry.
Revenue for the quarter rose by around 2% year-on-year to Rs. 23.42 billion, supported by stable sales volumes. However, the company’s gross profit slipped by 6.4% to Rs. 7.38 billion, largely due to a drop in cement prices during the period. Operating profit followed a similar trend, falling 9.5% to Rs. 5.96 billion.
On a positive note, finance costs dropped significantly by 32.2% to Rs. 1.14 billion reflecting better cash management and reduced borrowing expenses.
In response to pricing pressures, FCCL’s management implemented several cost-saving measures, including greater reliance on local coal, expansion of solar energy projects, and in-house production of polypropylene (PP) bags to minimize dependency on external suppliers.
These strategic initiatives helped offset the impact of lower prices, enabling the company’s profit before tax (PBT) to edge up by 1.1%, reaching Rs. 5.29 billion for the quarter.
Overall, despite pricing challenges and sectoral headwinds, Fauji Cement’s focus on operational efficiency and sustainable practices helped maintain a steady profit trajectory heading into FY25.
