Fauji Cement Limited (FCCL): 4QFY20 LPS at Rs0.24 vs. 4QFY19 EPS of Rs0.27 (Loss above expectations)
- Fauji Cement Limited (FCCL) announced its financial result today, wherein the company reported a loss of Rs0.24/share in 4QFY20, vs. earnings of Rs0.27/share in 4QFY19.
- Sequentially, the company’s losses increased by 58% QoQ.
- The loss announcement came in higher than industry expectations on the back of lower than expected gross margins.
- During FY20, company recorded a net loss of Rs59mn, first in more than a decade due to depletion in gross margins by 21.8ppts YoY to 3.8% on the back of fall in retention prices by 19% YoY.
- Total sales volumes are likely to be up by a meagre 1% YoY.
- Average price of coal during the outgoing quarter remained around US$69.4/ton (at a lag of two months) vs. average of US$80/ton in 3QFY20.
- Other expenses in 4QFY20 were reversed to the tune of Rs14mn, probably on the back of WPPF/WWF as for last two quarters company was in operating losses.
- Finance cost increased by 163% YoY due to increase in bank borrowings to meet working capital requirements.
- In 4QFY20, the company booked a tax reversal of Rs118mn, taking full year reversal to Rs114mn.
Fauji Cement is engaged in the manufacturing and marketing of cement.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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