RECORDER REPORT
KARACHI: Fauji Cement Company Limited (FCCL) has announced 1QFY14 earning per share (EPS) of Rs0.44 as against Rs0.27 in the same period last year, up 61 percent. The result beats street consensus of Rs0.32-0.37, analysts at Topline Securities said.
Though actual numbers of volumes are yet to be released but “we believe due to adverse weather conditions company’s volumetric sales decreased by 8-12 percent as against the same period last year. However, increase in price of cement more than made up for this negative volumetric variance,” they said.
Despite increase in cost of input (electricity charges) company’s margins expanded by 4pps to 33 percent vs 29 percent in the same period last year. Margin expansion was backed by approximately 18 percent increase in the retention price of the commodity.
At the time when local currency depreciated by six percent against US$, FCCL reaped benefits of currency swap agreement which resulted in company’s finance cost going down by 10 percent to Rs344mn, analysts said.
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