Rawalpindi: Fauji Cement Company Limited reported a net profit of PKR 3.25 billion for the first quarter of the fiscal year 2024-25, marking a 24% increase from the PKR 2.61 billion earned in the corresponding period last year. The company attributed the growth to better sales prices, optimized production costs, and higher export momentum, despite a decline in domestic cement dispatches.

According to information available from the Pakistan Stock Exchange (PSX), the company’s gross profit ratio improved to 34% from 31% in the same period last year. This improvement was driven by the use of local coal, alternative fuels, increased reliance on in-house power generation, and cost-cutting measures. Net profit margins also rose to 14%, compared to 13% in the same quarter of FY 2023-24.

Fauji Cement dispatched 1.32 million tons of cement in the first quarter of FY 2024-25, a slight decline of 1% compared to 1.34 million tons in the same period last year. Local dispatches remained largely stable at 1.16 million tons, while export sales decreased by 12% to 0.16 million tons. Industry-wide, cement dispatches fell by 13%, with local sales dropping by 20% and exports increasing by 22%. Overall, the sector recorded 10.2 million tons of dispatches, down from 11.9 million tons in the same quarter of the previous year.

The company’s management remains cautious about the outlook for domestic sales, citing the ongoing slowdown in construction activities. However, it expects export growth to continue in the coming months. Inflation reductions and lower interest rates may bring some improvement toward the end of the fiscal year.

The company is actively pursuing cost-saving initiatives, including solar power expansion, alternative fuel usage, and plans to acquire a polypropylene plant. These measures aim to ensure sustainable growth and operational efficiency in a challenging economic environment.