Rawalpindi: The Board of Directors of Fauji Cement Company Limited (FCCL) convened at the company's head office in Rawalpindi on April 24, 2025, to discuss the financial results for the nine months ending March 31, 2025. The board decided against issuing cash dividends, bonus shares, or right shares during this period.
For the nine-month period of the fiscal year 2025, the company's dispatches reached 3.99 million tons. This marks a 6% increase compared to the same period last year, which saw dispatches of 3.79 million tons. The rise in dispatches was accompanied by an improvement in the gross profit margin, which climbed to 34%, up from 31% in the same period last year.
The improvement in profit margins is attributed to increased sales, better pricing, and cost optimization strategies implemented by the management. These strategies included in-house PP bag manufacturing, increased use of local coal, adoption of various alternative fuels, enhanced self-generated power to reduce electricity costs, and optimization of fixed costs. Additionally, the company benefited from a decrease in interest rates following a reduction in the Karachi Interbank Offered Rate (KIBOR), which was influenced by a decline in inflation and a policy rate cut by the State Bank of Pakistan.
The company's profit after tax (PAT) for the period amounted to 9.40 billion rupees, a 34% increase from the 7 billion rupees reported in the same period last year. This rise in profitability is attributed to the aforementioned factors.
According to information available from the Pakistan Stock Exchange (PSX), the condensed interim un-audited financial statements for the period ending March 31, 2025, will be transmitted through the Pakistan Unified Corporate Action Reporting System (PUCARS) within the designated timeframe.
FCCL's performance highlights the impact of strategic operational improvements and favorable economic conditions on its financial results within the designated market category. The board's decision not to declare dividends or issue additional shares reflects a cautious approach amid the ongoing implementation of cost-saving measures.