FCCL_1QFY21 EPS clocked in at PkR0.50 - significantly better than expectation, (AKD, Off the Analyst's Desk, Oct 29, 2020)
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FCCL: 1QFY21 EPS clocked in at PkR0.50 – significantly better than expectation |
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· Fauji Cement Company Ltd.(FCCL) announced financial result for 1QFY21 where company posted profit after tax of PkR696mn (EPS: PkR0.50), against profit after tax of PkR293mn (EPS: PkR0.21) recorded in 1QFY20. Result was significantly better than our expectation on the back of higher than expected gross margins. · Revenue of the company increased by 30/47% YoY/QoQ, where apart from increase in dispatches, improved pricing scenario and decreased discounts also contributed heavily. Additional impetus must have been provided by a decline in FED to PkR75/bag from PkR100/bag. · Gross margins for 1QFY21 stood at 22% against -6/14% recorded in 4QFY20/1QFY20 while surpassing our expectation by a massive 10ppts. Deviation largely occurred from lower than expected cost of sales which we attribute to efficient procurement of coal. · Operating expenses for the quarter decreased by 6.1%QoQ where distribution/administrative expenses recorded decrease of 9.2/4.6%QoQ. After recording a tax reversal in 4QFY20 of PkR118mn, tax rate normalized and clocked in at 27% for 1QFY21. |
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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