Staff Report:
Fauji Cement Company Ltd (FCCL) announced its 1QFY25 results, reporting earnings of Rs3.25 billion (EPS of Rs1.32), marking a 24% year-over-year increase, aligning with market expectations. The company did not declare any cash dividend for the quarter, consistent with forecasts.

Earnings growth was driven by higher net revenue and improved gross margins. Net revenue rose 13% YoY and 11% QoQ to Rs22.96 billion, mainly due to increased domestic retention prices. Domestic dispatches rose by 1% YoY to 1.16 million tons, with exports down 12% YoY but up 18% QoQ to 0.16 million tons.Pioneer Cement Reports Rs1.3bn Profit in 4QFY24

FCCL achieved a gross margin of 34% in 1QFY25, up from 31% in 1QFY24, attributed to higher domestic prices and a better renewable energy mix. Finance costs increased by 27% YoY to Rs1.35 billion due to higher expenses associated with recent plant expansions. The effective tax rate stood at 38%, up from 35% in 1QFY24.

FCCL’s price-to-earnings ratio currently stands at 8.7x, with FY25 and FY26 forecasts at 6.6x and 5.2x, respectively.