FCCL_1QFY22 EPS clocked in PkR0.98 - Above expectations, (AKD, Off the Analyst's Desk, Oct 28, 2021)
AKD, Off the Analyst's Desk
FCCL: 1QFY22 EPS clocked in PkR0.98 – Above expectations
- Fauji Cement Company Limited (FCCL) announced result for 1QFY22 where EPS clocked in at PkR0.98, up 95/79% YoY/QoQ. The result was above our expectation mainly on account of higher than expected topline where we believe higher than expected dispatches played a part.
- Topline clocked in at PkR6.9bn, up 26/3%YoY/QoQ where the significant increase on YoY basis was largely a result of increase in dispatches while flattish performance on QoQ basis despite decline in dispatches is a consequence of increase in cement prices.
- Gross margins clocked in at 30% against our expectation of 19% mainly due to higher than expected dispatches leading to better utilization, in our opinion. On YoY basis, margins improved by 9bps while on QoQ basis, an improvement of 7bps was witnessed.
- Distribution expenses of the company increased by 6/6% YoY/QoQ while administrative expenses increased by 45%YoY however declining by 3% on QoQ basis.
- Along with the result, company also announced that board has considered amalgamation with Askari Cement Limited (ACL) and has requested for finalization of the relevant documentation, including but not limited to the scheme of arrangement and share swap ratio.
AKD Research
Fauji Cement is engaged in the manufacturing and marketing of cement.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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