Double the profit, steady margins, FCCL’s bullish Q4 outlook

Fauji Cement Company Limited (FCCL) is expected to announce strong financial results for the fourth quarter of FY25. According to estimates, the company is on track to post net earnings of Rs3.5 billion, translating into Earnings Per Share (EPS) of Rs1.44. That’s nearly double the profit compared to last year’s same quarter.

So, what’s driving this solid performance?

Key reasons behind the growth:

1. Higher Sales Volumes
   FCCL sold more cement this quarter, volumes are up 7% year-on-year. This shows continued demand in the construction and infrastructure sectors.
2. Lower Finance Cost
   The company’s borrowing costs have come down, helping boost the bottom line. Falling interest rates have played a big role here.
3. Strong Gross Margins
   FCCL is maintaining healthy margins. The gross margin is expected to stay flat at 36%, even in a tough pricing environment, showing strong cost control and efficiency.

Quarter-on-Quarter jump

Compared to the previous quarter (3QFY25), FCCL’s earnings are projected to grow by 66%, a significant improvement in just three months.

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Dividend alert

Investors can also look forward to a reward. A cash dividend of Rs2 per share is expected for 4QFY25. This adds to the stock’s appeal as a solid income generator.

Summary snapshot:

In summary, FCCL is delivering growth on all fronts, higher sales, lower costs, strong margins, and a healthy dividend. For investors and market watchers, this is a positive sign of both financial strength and operational discipline.

Source: Sherman Securities (Pvt.) Ltd.

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⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →