FFC Profits Up 151% in 4QFY24

Staff Report: FCCL announced its 4QFY24 result on Tuesday, recording earnings of Rs1.18bn (EPS of Rs0.48), marking a 151% YoY increase. However, the result fell below expectations due to a higher-than-expected effective tax rate.

Alongside the result, the company declared a final cash dividend of Rs1.0/share in 4QFY24, surpassing industry expectations.Local Cement Sales Down by 11% YoY in Jul-2024

Net revenue increased by 28% YoY and 4% QoQ to Rs20.6bn in 4QFY24. This growth in revenue was driven by higher local and export dispatches, along with improved retention prices domestically.

Domestic dispatches for FCCL rose by 14% YoY and 4% QoQ to 1.16mn tons, while export dispatches increased by 39% YoY and 69% QoQ to 0.14mn tons.

The company recorded gross margins of 36% in 4QFY24, up from 28% in 3QFY24 but slightly lower than the 39% in 4QFY23. The QoQ improvement in gross margins was attributed to higher domestic retention prices and an optimized coal mix.

Finance costs in 4QFY24 increased by 34% YoY to Rs1.52bn, mainly due to financial charges related to recent plant expansion.

The effective tax rate in 4QFY24 stood at 74%, compared to 33% in 3QFY24 and 84% in 4QFY23.

For FY24, FCCL’s earnings rose by 11% YoY to Rs8.2bn. The growth in earnings was largely driven by higher volumetric sales, improved retention prices, and an efficient coal mix.

Gross margins for FY24 stood at 32%, compared to 30% in FY23.

Distribution expenses increased by 21% YoY to Rs3.29bn, largely due to inflationary pressures and higher sales volumes.

Finance costs surged by 51% YoY to Rs5.3bn, owing to increased borrowings and rising interest rates.