Cement: FAUJI CEMENT COMPANY LIMITED - Nine Months Ended March 31, 2007
It is a public limited company, incorporated in Pakistan on November 23, 1992 under the companies ordinance 1984 and having its registered office situated at Aslam Plaza, Adamjee Road, Rawalpindi (Punjab). Fauji Foundation holds 45.8% ordinary and 100% preference shares in the company.
It started its business with effect from May 22, 1993 and is listed on Karachi, Islamabad and Lahore stock exchanges. Fauji Cement Company Ltd is primarily engaged in manufacturing and sales of ordinary Portland cement and its factory is situated near village Jhang, Tehsil Fateh Jang District Attock.
Fauji cement shares are trading at the stock exchange at substantially high premium. On June 19, 2007 the closing price of the share was recorded at Rs 19.10 per share carrying 91% premium over the par value of Rs 10. During the last 52 weeks market value of share continued upward trend from Rs 14 to Rs 24.60 per share showing increasing trust of investors in the company.
One of the main reason for improved perception is that the company is being run by an efficient management team. It has also gained strength from expanding demand for cement in the domestic market as well as in the export market. This is has helped the company in enhancing its capacity utilization which enables the company to optimise its cost. During the third quarter of the financial year 2006-07, (3Q 06-07) the company utilized capacity utilization of 96.2%.
The directors reported that 3Q 06-07 despatches of the industry showed growth of 37%. Cement exports registered a growth of 115.6% and domestic demand grew by 28.9%.
As regard Fauji Cement in 3Q 06-07, its despatches registered growth of 5.64%. The directors emphasized that Fauji Cement continue to command a premium brand. However, due to general fall in prices of cement, the net profit of the company decreased in the third quarter as compared to corresponding period last year.
As regard company's performance in the nine months of financial year 2006-07 (9M 06-07), the company's cumulative net sales for 9 months amounted to Rs 2.621 billion as compared to Rs 3.098 billion showing 15.4% decline compared to same period last year. Therefore there was domino effect in the downward slide of gross profit, operating profit and pretax profit financial cost was also on the lower side. However the future outlook of the management is optimistic. They say that given the business scenario at present the Board of Directors is confident that long term prospects for the company stakeholders would remain bright.
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Performance Statistics (Mln Rs)
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Balance Sheet ----As At----
March 31 June 30 2007 2006
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Un-audited Audited
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Share Capital Paid-up: 4,194.42 4,194.42
Accumulated (Loss): (628.71) (911.80)
Shareholders Equity: 3,565.71 3,282.62
L.T. Debts: 875.00 1,425.00
D.L. Staff Retirement Benefits: 10.15 7.91
D.L. Deferred Tax Liabilities-net: 442.02 215.38
Current Liabilities: 893.37 1,267.20
Fixed Assets-Tangible: 4,521.85 4,563.12
L.T. Advance: 9.00 9.00
L.T. Deposits: 46.61 46.61
Current Assets: 1,208.79 1,579.38
Total Assets: 5,786.25 6,198.11
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Profit & Loss A/c for Nine Months ended
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----March 31---- 2007 2006
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Net Sales: 2,621.23 3,098.25
Gross Profit: 935.98 1,573.33
Other Operating Income: 57.31 26.68
Profit from Operations: 870.44 1,458.33
Finance (Cost): (162.24) (208.42)
Profit before Taxation: 708.20 1,249.91
Net Profit after Taxation: 468.46 848.98
Earning Per Share (Rs: 1.26 2.29
Share Price (Rs) on 19/06/2007: 19.10 -
Price/Earning Ratio: 15.16 -
Debt/Equity Ratio: 20:80 30:70
Current Ratio: 1.35 1.25
Gross Profit Margin (%: 35.70 50.78
Net Profit Margin (%): 17.78 27.40
R.O.A. (%): 8.10 13.70
R.O.E. (%): 13.13 25.86
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COMPANY INFORMATION: Chairman: Lieutenant General Syed Arif Hasan HI (M) (Retired); Chief Executive/MD: Major General Malik Iftikhar Khan HI (M) (Retired); Director: Qaiser Javed; Company Secretary: Brigadier Shabbir Ahmed (Retired); Chief Financial Officer: Omer Ashraf; Registered Office & Marketing & Sales Office: 1st Floor, Aslam Plaza, 60 Adamjee Road, Saddar Rawalpindi; Website URL: www.fcl.com.pk; Factory: Near Village Jhang, Tehsil Fateh Jang District Attock.
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