Fecto Cement Limited (PSX: FECTC) was incorporated in Pakistan as a public limited company in 1981. The company is engaged in the manufacturing and sale of Portland cement.
Pattern of Shareholding
As of June 30, 2025, FECTC has a total of 50.16 million shares outstanding which are held by 2742 shareholders.
The company’s directors have the majority stake of 75.13 percent in the company followed by local individuals holding 12.52 percent shares.
Banks, DFIs, NBFIs and Insurance Companies collectively hold 7.50 percent of FECTC’s shares while NIT & ICP hold 2.25 percent shares.
Joint stock companies account for 1.77 percent shares of FECTC. The remaining shares are held by other categories of shareholders.
Historical Performance (2021-26)
After posting year-on-year decline in 2020, FECTC’s topline took an upward flight thereafter. Conversely, its bottomline plunged in 2020 where FECTC posted net loss. The company couldn’t recover from net loss in 2021, however, the magnitude of net loss considerably lessened. In 2022, FECTC registered net profit only to fall back in the loss pit in 2023.
In 2024, FECTC posted net profit which further grew in 2025 and 2026. The company’s margins which dwindled until 2020, posted recovery in 2021 and 2022. In 2023, FECTC’s margins drastically plunged followed by a considerable improvement in 2024 and 2025.
In 2026, the company’s margins ticked down, the detailed performance review of the period under consideration is given below.
Since 2021, FECTC’s net sales began the journey of growth. In 2021, its net sales rebounded by 43.23 percent year-on-year to clock in at Rs.4961.38 million. This was on account of 13.97 percent enhancement in its dispatches which stood at 731.069 tons.
Moreover, prices which remained depressed in 2020 also recoiled during 2021 on the back of resumption of construction activities as the government initiated various stimulus packages. FECTC’s local sales volume grew by 18.43 percent year-on-year in 2021 to clock in at 676,337 tons.
However, export dispatches took 22.19 percent slide to stand at 54,732 tons in 2021. Cost of sales surged by 11.83 percent year-on-year in 2021, however, upward revision in pricing resulted in a GP margin of 5.80 percent and gross profit of Rs.287.5 million as against gross loss recorded in the previous year.
Administrative and distribution expenses eroded by 5.47 percent and 6.5 percent respectively, resulting in an operating profit of Rs.12.43 million and OP margin of 0.25 percent in 2021. This was against the operating loss of Rs. 1005.67 million registered in 2021.
Despite monetary easing, FECTC’s finance cost surged by 165.34 percent year-on-year in 2021 as the company availed SBP Refinance scheme for renewable energy and also obtained additional running finance.
Escalation in company’s outstanding loans is also evident in a steep hike in its debt-to-equity ratio which clocked in at 18 percent in 2021 versus 4 percent in 2020. FECTC posted net loss of Rs.67.287 million in 2021, down 91.26 percent year-on-year. Loss per share was recorded at Rs.1.34 in 2021 versus loss per share of Rs.15.35 posted in 2020.
FECTC’s topline continued to grow in 2022, however, unlike 2021; the topline growth didn’t come on the heels on improved sales volume rather it was the result of upward price revision. In 2022, FECTC’s topline mounted by 36.55 percent year-on-year to clock in at Rs. 6774.57 million. This was despite the fact that its sales volume tumbled by 2.52 percent to clock in at 712,644 tons.
While local sales volume posted a marginal 1.44 percent rise to stand at 686,077 tons, export sales volume declined by a massive 51.5 percent due to disturbance at Afghan border and lesser demand from Afghanistan market.
Higher cement prices are evident by the fact that the company attained 203.87 percent rise in its gross profit in 2022 with GP margin climbing up to 12.90 percent. Administrative expense spiked by 15.40 percent year-on-year in 2022 mainly due to higher payroll expense. Conversely, as sales volume fell, distribution expense slumped by 7.55 percent year-on-year. Scrap sales made during the year coupled with amortization of deferred government grant drove up other income by 88 percent in 2022.
As a consequence, operation profit magnified by 4597.56 percent in 2022 with OP margin flying up to 8.62 percent. Finance cost soared by 104.75 percent in 2022 due to higher discount rate coupled with increased long-term borrowings as the company availed temporary economic refinance facility (TERF) during the year along with refinance scheme for the payment of wages and renewable energy financing scheme. Increased borrowing had its impact on debt-to-equity ratio which sky-rocketed to 26 percent in 2022.
Elevated finance cost coupled with increased taxation greatly diluted the bottomline growth. However, FECTC was able to record net profit of Rs.286.703 million in 2022 with EPS of Rs.5.72. NP margin stood at 4.23 percent in 2022.
The topline continued to grow in 2023 to the tune of 28.16 percent to clock in at Rs.8682.18 million. Just like the previous year, the topline growth was the consequence of upward revision in the prices of cement despite the fact that dispatches took 9.92 percent slide to clock in at 641,956 tons in 2023. This came on the back of a decline of 9.65 percent and 16.69 percent respectively in the local and export sales volume of the company.
Economic and political uncertainty in the country as well as devastating floods took its toll on the local demand while low demand from Afghanistan and border nuisances kept export sales in check. Cost of sales hiked by a staggering 41.84 percent in 2023 on the back of sky-rocketed prices of coal, diesel and electricity coupled with Pak Rupee depreciation.
Amid depressed demand, the company couldn’t pass on the impact of cost hike completely to its consumers which resulted in 64.24 percent erosion of gross profit in 2023 with GP margin dwindling to 3.60 percent. Administrative expense soared by 17.37 percent year-on-year in 2023 due to higher payroll expense and depreciation.
Increased salaries and wages drove up the distribution expense by 13.73 percent year-on-year in 2023. The company sold off its operating assets at a gain in 2023 which resulted in 187.81 percent rise in its other income in 2023. Yet, it was unable to provide any impetus to its operating profit which contracted by 77.70 percent year-on-year in 2023 with OP margin marching down to 1.50 percent.
Finance cost mounted by 95.32 percent year-on-year in 2023 due to enormous borrowings particularly running finance. FECTC recorded net loss of Rs.133.245 million in 2023 with loss per share of Rs.2.66.
In 2024, FECTC recorded 25.64 percent year-on-year growth in its topline which clocked in at Rs.10,908.12 million. This came on the back of 12.94 percent rise in the company’s sales volume which stood at 725,054 tons in 2024.
Volumetric growth was driven by local sales which grew by 15 percent in 2024 to clock in at 712,769 tons. Conversely, export sales volume dipped by 44.43 percent to clock in at 12,284 tons. This was due to unattractive prices in the international market.
The company significantly increased the prices to account for inflationary pressure and high energy cost. This resulted in 357.58 percent improvement in gross profit in 2024 with GP margin climbing up to 13.11 percent. Administrative expense surged by 11.81 percent in 2024 due to higher payroll expense on account of inflationary pressure.
The company squeezed its workforce from 336 employees in 2023 to 330 employees in 2024.
Distribution expense escalated by 15.74 percent in 2024 due to higher salaries & benefits of the distribution staff as well as elevated marking fee. Other income dipped by 48.96 percent in 2024 due to high-base effect as the company recorded gain on sale of investment property in the previous year.
Other expense plummeted by 44.44 percent in 2024 due to high-base effect as the company recorded loss on sale of obsolete bags in 2023.
On the positive front, the company recorded share of profit worth Rs.18.90 million on its associate, FECTC’s operating profit improved by 749.84 percent in 2024 with OP margin tremendously rising up to 10.15 percent.
Finance cost tapered off by 8.91 percent in 2024 as the company paid off a huge portion of its outstanding liabilities during the year. FECTC recorded net profit of Rs.359.967 million in 2024. This translated into EPS of Rs.7.18 and NP margin of 3.30 percent.
In 2025, FECTC’s net sales ticked up by 1.73 percent to clock in at Rs.11,096.92 million. This came on the back of upward revision in cement prices during the year. Dispatches fell by 1.60 percent year-on-year to clock in at 713,644 tons in 2025.
The decline in dispatches came on the back of 3.09 percent slash in local dispatches which clocked in at 690,987 tons in 2025. This was due to weakened private housing sector, limited credit availability, high construction cost, slow disbursement of PSDP and sluggish recovery in real-estate and infrastructure related sectors. Conversely, export dispatches posted a staggering year-on-year growth of 88.18 percent to clock in at 22,657 tons in 2025.
Export sales stood at 3.174 percent of the company’s total dispatches in 2025 versus its share of 1.66 percent in the previous year. Cost of sales ticked down by 2.27 percent in 2025 due to cost optimization strategies adopted by the company which included improved coal utilization per ton of final product. This enabled the company to record 28.24 percent stronger gross profit in 2025 with GP margin climbing up to 16.52 percent.
Administrative expense heightened by 24.85 percent in 2025 due to higher payroll expense on account of inflationary pressure as well workforce expansion from 330 employees in 2024 to 337 employees in 2025. Distribution expense surged by 30.46 percent in 2025 due to higher salaries of sales force and transportation expense incurred during the year.
Liabilities no longer payable written off during the year resulted in 23.63 percent improvement in other income in 2025. Other expense surged by 232.64 percent in 2025 due to stocks and in-adjustable input tax written off during the year.
FECTC was able to record net other income of Rs.132.45 million in 2025, up 18.12 percent year-on-year. However, it was partially offset by share of loss of associate worth Rs.60.96 million recorded in 2025.
Finance cost tapered off by 37.65 percent in 2025 due to monetary easing and a considerable decline in outstanding borrowings at the end of the year. Net profit multiplied by 69.10 percent to clock in at Rs.608.692 million in 2025. This translated into EPS of Rs.12.14 and NP margin of 5.49 percent in 2025.
Recent Performance (2026)
In 2026, FECTC posted 12.60 percent enhancement in its topline which clocked in at Rs.12,495.27 million. This came on the back of a marvelous recovery in the overall dispatches of the company. Unlike last year, local dispatches mounted in 2026. This was due to broad based development in macroeconomic conditions and better distribution efficiency and market presence demonstrated by the company.
Conversely, export sales dipped in 2026 as majority of the export demand was met by the companies in the south zone. Cost of sales surged by 20.80 percent in 2026 due to higher coal prices. Gross profit tumbled by 28.82 percent in 2026 with GP margin receding to 10.44 percent. This was due to negative prices variance as retention prices dropped.
Higher operational activity resulted in 20.23 percent escalation in administrative expense in 2026. Distribution expense ticked up by only 4.85 percent in 2026 due to lower export sales and stable fuel prices for major part of the year. Other income strengthened by 155.48 percent in 2026 likely due to gain recognized on the disposal of investment property.
Other expense also escalated by 469.56 percent in 2026, however, it was offset by superior other income recognized during the year. FECTC also recognized share of gain worth Rs.41.04 million from its associate in 2026 as against share of loss of Rs.60.96 million recorded in the previous year. Operating profit dwindled by 25.93 percent in 2026 with OP margin falling down to 7.90 percent.
Better working capital management coupled with monetary easing allowed FECTC to shave off its finance cost by 37.36 percent in 2026. The company posted net profit of Rs.663.36 million in 2026, up 8.98 percent year-on-year. This translated into EPS of Rs.13.22 and NP margin of 5.31 percent in 2026.
Future Outlook
Advancement in macroeconomic indicators, improvement in investor confidence and enrichment in infrastructure activity will boost cement demand in 2027.
The government is also expected to make disbursements under some core PSDP projects during the year. Infrastructure development in the flood affected areas will also boost cement demand. However, geopolitical tensions, indigenous political instability, high excise duties and property taxes and tougher competition from the Northern players can have an adverse impact on the demand.