The company (FCCL) is a public limited company incorporated in Rawalpindi on 23 November 1992 and commenced its business with effect from 22 May 1993. It is headquartered in Islamabad and operates a cement plant at Jhang Bahtar, Tehsil Fateh Jhang, District Attock in the province of Punjab. It was initially sponsored by Fauji Foundation. Fauji Foundation Group was founded in 1954 as a charitable trust for the uplift of ex-servicemen of the Armed Forces and their dependents. Today, the Foundation is a multi disciplinary welfare-cum-industrial entity having operations across the country.
The cement plant operating in the Fauji Cement System is one of the most efficient and best maintained in the country and has annual production capacity of almost 1.0 million tonnes of cement. The single unit plant is the second largest in Pakistan. The FCCL's shares are quoted on Karachi, Islamabad and Lahore Stock Exchange, Fauji Foundation has 52% stake in the equity of the company.
At present the shares of the company are trading at Rs 14 per share carrying 40% premium over the par value. During the last one year the market value of the share appreciated from Rs 12.50 to Rs 21.80 per share. During the nine months ended 31 March 2005 (9M 2004-05) the company generated net sales at Rs 2.017 billion (9M 2003-04: Rs 1.612 billion) showing 25% increase over the same period last year (SPLY). But towards the third quarter (Q3 January-March 2005), the growth rate in net sales was lower at 15.6% over the SPLY (Q3 January-March 2005), the growth rate in net sales was lower at 15.6% over the SPLY (Q3 January-March 2004). In this quarter there was rise in domestic sales but its exports registered slight decline due to prolonged rains/snowfall in Afghanistan.
FCCL's capacity utilisation in the quarter rose to 88.5% as compared to 88% in the same quarter last year. The average retention price per tonne of cement improved to Rs 3,139 per tonne as compared to Rs 2737 per tonnes of same quarter last year. Hence Q3 January-March 2005, gross profit and net profit substantially improved.
The company has commissioned the gas burner for pre-calciner also, thus enabling the plant to operate entirely any of the three fuels (furnace oil, gas or coal). The work on capacity enhancement of plant from 3000 tonnes of clinker per day to 3,700 tonnes per day is going on satisfactory and is expected to be completed in June 2005 as per plan of the company.
During nine months (July 2004-March 2005) the company's operating profit increased to Rs 693 million from 510.0 million in SPLY by 36%. Pretax profit increased substantially. But net profit after taxation at Rs 362 million is much lower than Rs 854.30 million booked in the corresponding 9 months of the preceding financial year because a large amount of Rs 690.2 was written back last year in taxation.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 4,194.42 4,194.42
Accumulated (Loss): (1,893.50) (2,255.29)
Shareholders Equity: 2,300.92 1,939.13
L.T. Debts: 2,523.67 3,558.84
Deferred Liabilities-Staff
Retirement Benefits: 44.54 40.26Current Liabilities: 1,004.75 372.12
Fixed Assets-Tangible: 4,683.43 4,729.25
L.T. Deposits: 46.61 36.60
L.T. Advances: 9.00 -
Deferred Tax-Net: 413.00 570.04
Current Assets: 721.84 574.46
Total Assets: 5,873.88 5,910.35
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Profit & Loss A/c For Nine Months Ended
March 31 2005 2004
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Net Sales: 2,016.56 1,612.40
Gross Profit: 756.80 501.52Other Operating Income: 10.33 40.32
Operating Profit: 692.71 510.06
Financial (Cost): (162.78) (194.47)Profit Before Taxation: 529.92 172.29
Profit After Taxation: 361.79 854.30
Earnings Per Share (Rs): 0.98 2.30
Share Price (Rs) 11-5-2005: 14.00 -
Price/Earning Ratio: 14.29 -
Book Value of Share (Rs): 6.02 4.62
Debt/Equity Ratio: 52:48 65:35
Current Ratio: 0.72 1.54
Gross Profit Margin (%): 37.52 31.10
Net Profit Margin (%): 17.94 52.98
R.O.A. (%): 6.16 14.45
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COMPANY INFORMATION: Chairman: Lieutenant General Syed Muhammad Amjad, HI, HI(M) (Retd); Chief Executive/MD: Major General Rehmat Khan, HI(M) (Retd); Director: Qaiser Javed: Company Secretary: Brigadier Allah Ditta, SI(M) (Retd); Registered Office & Marketing/Sales Department: 1st Floor, Aslam Plaza 60 Adamjee Road Saddar Rawalpindi; Web Address: www.fccl.com.pk Factory: Near Village Jhang, Tehsil Fateh Jhang District Attock.
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