Fuaji Cement

Topics: Fiscal year, Generally Accepted Accounting Principles, Capacity utilization Pages: 2 (589 words) Published: May 15, 2013
Karachi, Fauji Cement reported a profit of Rs0.923 billion for the first half of the current fiscal year, switching to black from a loss of Rs0.102 billion in the corresponding half of the preceding year. On a quarter-to-quarter basis, the cement producer’s profits accumulated to Rs0.562 billion in the second quarter of fiscal 2013 against Rs0.361 billion profit in the corresponding previous quarter, up an impressive 56%. Gross profit ratio was 27% as compared to 17% during last year. An improvement in cement prices helped the Company in passing on some of its input costs. The Company earned a Profit after Tax of Rs. 552 Million as compared to the last year's profit of Rs. 426 Million.

2012 has been really good year for the cement industry in general as higher cement prices and softer coal prices have propelled profits of the highly-leveraged sector. With 13% increase in the exports due to the increase of capacity from 3,885 TPD (Tons Per Day) to 11,445 TPD. Capacity utilization of FCCL in FY 2011-12 has been 62% (based on 11,445 TPD) whereas in FY 2010-11 it was 93%( based on 3,885 TPD). The industry has more than made up for the losses through higher local dispatches amid higher prices. There has been a 157% increase in domestic dispatches in FY 2011-12. Revenues clocked in at Rs 11,523,050 in the 2012 period, up from Rs 4,742,593 in the corresponding half of 2011. The astounding boost was solely driven by selling prices which surged 13% to Rs465 per bag in the south zone and 8% to Rs438 in the north. Also Fauji Cement’s expansion plans have propelled the company’s volumetric growth, as the new production line enabled it to achieve 26% growth in selling volumes to 1.85 million tons. Consequently, revenues clocked in 56% higher at Rs11.523 billion. Sales in FY09 heavily increased by around 48% compared to a marginal 2.39% increase in FY08. The main reason attributing to such increase would be the increase in exports experienced by the cement industry in FY09...
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