Fauji Cement Company Ltd (FCCL) has posted NPAT of PKR1.6bn in 3QFY23 (EPS: PKR0.77), down 32% QoQ but up 21% YoY. The result came slightly lower than our expected EPS of PKR0.84, where deviation stemmed from higher-than-expected finance cost. KEY RESULT HIGHLIGHTS FOR 3QFY23: * Net Sales were up 40% YoY but down 4% QoQ to PKR18.2bn. The sequential decline in revenue is majorly contributed by 22% decline in sales volumes, offset to a great extent by the increase in local cement prices. We ex...
Fauji Cement Company Ltd (FCCL) has posted a NPAT of PKR2.8bn for 2QFY23 (EPS: PKR1.13), up 64%YoY and 19%QoQ, in 2QFY23. The result has come in line with our expected EPS of PKR1.08. This takes 1HFY23 EPS to PKR2.07, up 34%YoY. KEY RESULT HIGHLIGHTS FOR 2QFY23: * Net Sales up 38%YoY and 29%QoQ to PKR19.0bn. The increase in revenue is majorly contributed by higher cement prices and volumes. We expected topline of PKR19.3bn in 2Q. * Gross margins have reduced by 0.4ppt YoY and 1.7ppt QoQ...
Fauji Cement Company Ltd (FCCL) has posted NPAT of PKR2.3bn for 1QFY23 (EPS: PKR0.94), up 70% YoY but down 24% QoQ. The result came in much higher than our estimated NPAT of PKR1.7bn (EPS: PKR0.68), majorly due to higher than expected GMs of 28.7% KEY OBSERVATIONS * Net sales have increased 112% YoY (down 53% QoQ) to PKR14.7bn in 1QFY23. The sequential decline in QoQ revenue is majorly due to the booking of Askari Cement’s full year sales in the last quarter, post amalgamation. * Gross ...
Fauji Cement Company Ltd (FCCL) has posted NPAT of PKR3.1bn for 4QFY22 (EPS: PKR1.40), up 249% YoY and 147% QoQ, reporting amalgamated accounts upon acquisition of Askari Cement. This takes FY22 net profit to PKR7.1bn (EPS: PKR3.26), up 105% YoY. The company also announced a share payout of 12.5%. KEY OBSERVATIONS * Net sales have increased 153% YoY, to PKR31.3bn as compared to our estimated revenue of PKR9.5bn. We estimate that the company has booked Askari Cement full-year sales of PKR21.7...
AKD Daily Technicals KSE-100: Choppy trading session witnessed The index opened on a positive note and a range bound activity witnessed. The local bourse posted an intraday high of 220pts, a low of 62pts and concluded with a gain of 59pts to settle at 42,726pts level. A choppy session witnessed as index closed near to the area where it opened. The index is hovering in an important area. The index broke below an important trend line support (42,800) on closing basis which cements a bearish vi...
Fauji Cement Company Ltd (FCCL) has posted NPAT of PKR1.2bn for 3QFY22 (EPS: PKR0.89), up 22% yoy, but down 16% qoq in 3QFY22. The result has come broadly in-line with our expected EPS of PKR0.82. This takes 9MFY22 net profit to PKR4.1bn (EPS: PKR2.94), up 56% yoy. KEY HIGHLIGHTS FOR 3QFY22 RESULT: * Net Sales have increased 30% yoy, but down 8% qoq to PKR7.7bn. The sequential decline in revenues follows a 17% qoq decrease in volumes. This is despite an increase in local prices during the qu...
IMS Cement Universe cumulative core profits are expected to decline sharply by c.18%/38% qoq/yoy to PKR7.7bn in 3QFY22, from PKR9.6bn in 2QFY22 and PKR13.1bn in 3QFY21. Despite better retention prices and import of coal from Afghanistan, lower utilization levels during the winter season and elevated international coal and oil prices will reduce sequential gross margins, by c.5ppt. Therefore net profits are estimated to decline. During the quarter, IMS Cement cluster declined by 5.8%, underper...
* We are revising estimates for our Cement coverage led by (i) elevated international energy prices, (ii) slower demand growth amid rising construction cost and lower government spending, (iii) inclusion of new expansions, and (iv) potential resumption of monetary tightening. * We assume that local cement demand growth will be flat in FY22f and expect an increase of 3%/5% yoy in FY23/24f, much lower than our previous growth estimates and also past 20yr average. Besides demand, major thr...
Fauji Cement Company Ltd (FCCL) has posted a NPAT of PKR1.47bn for 2QFY22 (EPS: PKR1.07), up 62% yoy and 8% qoq in 2QFY22; the result has come in higher than our expected EPS of PKR0.91. Major deviation is higher-than-expected gross margins and finance income instead of finance cost that we had assumed. The result takes 1HFY22 net profits to PKR2.82bn (EPS: PKR2.05), up 77% yoy. KEY HIGHLIGHTS FOR 2QFY22 RESULT: Net Sales have surged 36% yoy and 20% qoq to PKR8.31bn. The sequential increase i...
Fauji Cement Company Ltd (FCCL) has posted a NPAT of PKR1.36bn for 1QFY22 (EPS: PKR0.98), up 95% yoy and 58% qoq in 1QFY22; the result has come in higher than our expected EPS of PKR0.57. The major deviation was higher-than-expected gross margins. KEY RESULT HIGHLIGHTS FOR 1QFY22: Despite the decline in total sales volume by 3% yoy and 5% qoq, Net Sales have surged 26% yoy and 3% qoq to PKR6.94bn. The increase in revenues is majorly contributed by higher cement prices and the discontinuation ...
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 whil...
* We are revising estimates for our Cement coverage led by (i) elevated international energy prices, (ii) possible increase in interest rates going forward, (iii) inclusion of new expansion and (iv) revised local demand outlook and cement prices. * We believe that local cement demand will increase by 7%/5% in FY22/23f, lower than our previous estimates of 10%/8%. Presently, coal prices pose the biggest threat to the profitability of the sector but we assume that global prices will norma...
Fauji Cement Company Ltd (FCCL) has posted a NPAT of PKR0.86bn for 4QFY21 (EPS: PKR0.62), down 15% qoq, also lower than our expectation of PKR0.98bn (EPS: PKR0.71). This takes FY21 net profits to PKR3.47bn (EPS: PKR2.52) compared with a loss of PKR59mn SPLY. The bottom-line has rebounded massively in 4Q as compared with a net loss in 4QFY20 (LPS: 0.27), mainly because of (i) higher retention prices, and (ii) increase in dispatches. KEY RESULT HIGHLIGHTS FOR 4QFY21: * Net Sales have surged 80...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Second price hike in a week: As per our channel checks, cement prices in the North region have increased by PKR10/bag to a new all-time high of c.PKR660/bag. This is the second consecutive hike in the past week, taking total price increase to PKR20-25/bag. The major reasons for increasing cement prices is to pass on the recent increase in global coal prices (to US$133/ton, 13yr high) and transportation costs amid rising local petroleum prices. Prices have surpassed our assumption for FY22f; e...
EXPECT A DECLINE IN PROFITS DUE TO LACK OF ONE-OFFS * The cumulative unconsolidated profits of IMS cement universe are expected to decline c.51% qoq to PKR8.6bn in 4QFY21 from PKR17.5bn in 3QFY21 (down 15% qoq excluding one-offs). However, on a yoy basis, the sector’s performance will be exceptional, given cumulative losses of PKR2.0bn in 4QFY20. * Higher variable cost amid increase in global coal and oil prices and the absence of one-off dividend income in case of LUCK, MLCF and DGKC a...
We are revising the estimates of our Cement Universe, to adjust for rising global coal prices (up 33% since Feb 2021). Our EPS estimates for FY22/23f are down by 9%/7% on average. Note that we also assume higher local demand, which should allow better pass-through and higher retention prices – containing the decline in margins due to higher coal prices. We have also rolled over our target prices to June 2022, hence our TPs are largely similar to before the above changes. The cement stocks in ...
A director at Fauji Cement maiden bought 4,316,000 shares at 22.902PKR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two yea...
Fauji Cement Company Ltd (FCCL) has posted a NPAT of PKR1.01bn for 3QFY21 (EPS: PKR0.73), up 12% qoq, slightly lower than our expectation of PKR1.12bn (EPS: PKR0.81). This takes 9MFY21 net profits to PKR2.61bn (EPS: PKR1.89) compared with a paltry PKR0.27bn SPLY. The bottom-line has rebounded massively in 3Q as compared with a net loss in 3QFY20 (LPS: 0.15), mainly because of (i) higher retention prices and (ii) decline in international energy prices. Key result highlights for 3QFY21: Net Sal...
AKD, Off the Analyst's Desk FCCL: 3QFY21 EPS clocked in at PkR 0.73 (In-Line) Fauji Cement Company Ltd. (FCCL) reported earnings for 9MFY21 where company posted PAT of PkR2.6bn (EPS: PkR1.89), up 9.6xYoY against PAT of PkR272mn (EPS: PkR0.20) for 9MFY20. For 3QFY21, PAT clocked in at PkR1bn (EPS: PkR0.73), increasing by 12%QoQ. The result was in line with our expectations. Gross margins for the quarter increased by 5ppts to 30% as prices during the quarter improved while we believe company ...
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