Fauji Cement Company Limited (PSX: FCCL) reported a net profit of Rs. 4.96 billion for the first quarter of fiscal year 2026-27 (1QFY27), up 51 percent year over year but down 8 percent quarter over quarter.
Earnings per share (EPS) clocked in at Rs. 2.02, in line with expectations.
Net sales increased 11 percent year over year, supported by a 12 percent increase in local dispatches.
However, overall dispatches grew by only 5 percent year over year, primarily due to the absence of exports following the Afghan border closure.
Gross margins improved to 36 percent, supported by higher cement retention prices amid rising cement prices and cost optimization initiatives, including the government’s incremental electricity consumption package and in-house production of polypropylene (PP) bags.
Distribution expenses increased 17 percent year over year, mainly due to higher oil prices, which pushed up transportation costs.
Meanwhile, finance costs declined 42 percent quarter over quarter, reflecting early debt repayment during the quarter. Long-term and short-term borrowings decreased by 10 percent and 92 percent quarter over quarter, respectively.
The effective tax rate stood at 38 percent, compared to 37.9 percent in the corresponding period last year and 22.8 percent in the previous quarter.
The post Afghan Border Ban Hits Fauji Cement Exports appeared first on ProPakistani.
