KARACHI: Fauji Cement Company Limited (PSX: FCCL) posted a robust 33.57% increase in net profit to Rs9.41 billion for the nine-month period ended March 31, 2025, compared to Rs7.04 billion in the same period last year. Earnings per share rose to Rs3.84, up from Rs2.87, driven by stronger revenue and improved cost efficiency.
The company’s net revenue rose by 13.05% to Rs67.15 billion, with gross profit climbing 26.6% to Rs23.05 billion. Improved pricing strategies and operational discipline helped boost margins, while a 12% drop in selling and distribution expenses further supported the bottom line. Administrative costs rose modestly, while other expenses nearly doubled, rising 79.78% to Rs1.04 billion.
Operating profit jumped 33.1% to Rs19.06 billion, though higher interest rates pushed finance costs up 23% to Rs4.64 billion. However, a 290% surge in finance income helped cushion the impact. As a result, profit before taxation surged by 41.39% to Rs15.19 billion, while income tax expenses also rose sharply by 56.25%, reflecting a heavier tax burden.
Despite the strong financials, Fauji Cement’s share price fell over 4% during Thursday’s trading session, indicating a bearish market reaction—possibly linked to broader sector concerns, profit-taking, or speculative pressure.
Fauji Cement, part of the Fauji Foundation Group, has steadily strengthened its market position through expansion and strategic acquisitions, including its 2022 merger with Askari Cement. For FY24, the company reported a record annual profit of Rs9.76 billion, reflecting strong demand and price rationalisation. With capacity enhancements underway and consistent earnings growth, FCCL remains a key player in Pakistan’s north zone cement market, though recent volatility in construction demand and monetary tightening may be tempering investor sentiment.
