Karachi: Fecto Cement Ltd. has reported its financial results for the quarter ending September 30, 2026, indicating a notable decrease in profitability despite a rise in sales revenue. On October 27, 2026, the company disclosed un-audited financial statements revealing a decline in net profit due to increased costs.
The net sales revenue for the period reached 3.77 billion rupees, up from 3.56 billion rupees in the previous year, marking a significant move of 5.93%. However, the cost of sales also rose to 3.39 billion rupees from 2.90 billion rupees. Consequently, the gross profit diminished to 380.50 million rupees from 661.79 million rupees, reflecting the impact of rising production expenses on the company's bottom line.
Administrative expenses slightly decreased to 122.99 million rupees from 126.72 million rupees, while distribution costs increased to 35.50 million rupees from 33.84 million rupees. Other operating expenses fell to 23.37 million rupees compared to 34.63 million rupees in the previous year. Meanwhile, other operating income improved to 17.50 million rupees from 10.84 million rupees.
The operating profit decreased to 216.14 million rupees from 477.44 million rupees, marking a very large or significant move. The share of profit from associates stood at 6.56 million rupees, compared to a loss of 1.17 million rupees last year. Interest income from cash equivalents saw a sharp decline to 0.84 million rupees from 15.64 million rupees, further impacting the company's overall profitability.
According to information available from the Pakistan Stock Exchange (PSX), the company's profit before financing and income taxes amounted to 223.54 million rupees, down from 491.90 million rupees. Interest expenses on borrowings and lease liabilities increased to 29.11 million rupees from 25.83 million rupees, leading to a profit before income taxes of 194.43 million rupees, compared to 466.07 million rupees in the previous year.
The company reported no levies this quarter, a change from the 44.52 million rupees recorded last September. Taxation expenses decreased to 83.39 million rupees from 213.77 million rupees. Overall, the profit for the period was 111.04 million rupees, significantly down from 207.78 million rupees last year, indicating a very large or significant move.
Fecto Cement's earnings per share, both basic and diluted, stood at 2.21 rupees, compared to 4.14 rupees in the previous year. The total comprehensive income for the quarter was also 111.04 million rupees, reflecting the same trend as the net profit.
The designated market category for Fecto Cement Ltd. remains unchanged, with the company continuing to navigate the challenges posed by rising production costs and fluctuating interest income in the current economic climate.