Fecto Cement Limited reported a net profit of PKR 317.32 million (EPS: PKR 6.33) in FY24, a significant turnaround from a net loss of PKR 133.25 million (LPS: PKR 3.66) in FY23. Revenue for FY24 increased by 26% year-on-year to PKR 10.91 billion, compared to PKR 8.68 billion in FY23.
The increase in revenue was attributed to an increase in retention prices. The gross profit margin was reported at 13.11% in FY24. The power mix comprised 56% from WAPDA, 36% from WHRP, and 8% from solar. In FY25, the company plans to expand the capacity of solar power plants, following the installation of its first 5 MW solar plant in FY21. In 1QFY25, the fuel mix shifted to 52% from WAPDA, 40% from WHRP, and 8% from solar.
Local dispatches of Fecto Cement improved by 15%, outperforming the industry, which saw a 5% decline. However, exports declined by 44%, against an industry increase of 56% in FY24. Total industry dispatches grew by 2%, while Fecto Cement’s dispatches increased by 13%. During 1QFY25, Fecto Cement’s dispatches declined by 4%, compared to a 14% decline in industry dispatches.
The production capacity of the plant is 3,000 tons per day. The total energy requirement of the company is 84 million units. The capital expenditure for the classifier project is PKR 200 million, which will be self-financed. Management expects product upgradation and capacity improvement upon completion of this project.
The weighted average fuel cost was reported at approximately PKR 7,000 per ton, with the fuel mix comprising 60% local coal and 40% Afghan coal. Looking ahead, management anticipates demand to improve due to a lower policy rate. The long-term outlook remains optimistic, with expectations of higher sales compared to the previous year.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.
