Fauji Cement Company Limited (FCCL) has reported a record profit of Rs13.3 billion for FY25, marking a 62% year-on-year surge from Rs8.2 billion in FY24. This is the highest-ever profit in the company’s history, supported by strong sales growth, margin improvements, and cost optimization.
The company’s earnings per share (EPS) climbed to Rs5.43, compared to Rs3.35 in the previous fiscal year. For the fourth quarter of FY25, Fauji Cement recorded earnings of Rs3.9 billion (EPS: Rs1.60), representing a remarkable 232% year-on-year rise and an 83% increase quarter-on-quarter. The board also announced a dividend per share (DPS) of Rs1.25 alongside the results.
Net revenue for FY25 reached Rs89 billion, reflecting an 11% increase from last year, driven by a 6% rise in dispatches. Fourth-quarter revenue stood at Rs21.8 billion, up 6% from Rs20.6 billion in the same quarter of FY24, supported by higher domestic sales. On a quarter-on-quarter basis, sales increased by 13%, according to Arif Habib Ltd.
Gross margins improved to 35.5% in FY25 from 32.1% the previous year, due to higher sales volumes, improved retention prices, and operational efficiencies. In Q4, margins expanded by 290 basis points to 39.1%, driven by higher domestic dispatches and a better fuel and power mix.
Selling and distribution expenses dropped 11% year-on-year to Rs2.9 billion in FY25, while the fourth quarter saw a 6% reduction. Finance costs declined 10% year-on-year to Rs4.7 billion, with a sharp 50% drop in Q4 due to lower interest rates. The company’s effective tax rate also decreased to 38.1% from 46.4% last year.
Fauji Cement’s board approved the expansion of its PP Bags Manufacturing Plant at Hattar, aiming to meet 100% of in-house bag requirements, a move expected to further enhance gross margins.