FCCL_2QFY21 EPS clocked in at PkR0.66, (AKD, Off the Analyst's Desk, Feb 19, 2021)
|
FCCL: 2QFY21 EPS clocked in at PkR0.66 |
||
|
· Fauji Cement Company Ltd. (FCCL) announced financial result for 1HFY21 where company posted PAT of PkR1.6bn (EPS: PkR1.16), up 2.3xYoY. For 2QFY21, PAT stood at PkR905mn (EPS: PkR0.66), up 30%/3.8x QoQ/YoY – slightly above our expectation of PkR794mn (EPS: PkR0.58). · Gross margins for 1HFY21 stood at 23% against 10% for 1HFY20 as local cement prices improved post conclusion of expansion cycle. For 2QFY20, gross margins stood at 25% against 7/22% in 2QFY20/1QFY21. · Operating expenses for the quarter increased by 37%YoY majorly due to increase in dispatches while increase in profitability also resulted in higher contribution to welfare fund, in our opinion. Effective tax rate for the company clocked in 27% in 2QFY21 against -23/27% for 2QFY20/1QFY21. · Along with the result, company also announced an expansion of 2.05mn tons at Dera Ghazi Khan. The cost of expansion will be finalized after negotiations with suppliers and with financial close expected by 31st Mar’21, construction is expected to take 2.5 years. · We have a Buy stance on the stock with our Dec’21 TP of PkR39.1/sh providing upside of 50%. The stock is currently trading at FY21F EV/EBITDA of 6.3x and EV/ton of USD67. |
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.