Fauji Cement Company has announced its financial results for the 3rd quarter ended on March 31st, 2020.
The cement manufacturer has reported a loss of Rs. 210.38 million as compared to a profit of Rs. 616.47 million in the same period last year.
This takes the nine months earnings to just Rs. 271 million, down by almost 89% as compared to Rs. 2.44 billion recorded in the same period last year.
According to a notification to the PSX, the company’s sales during the third quarter were down by 24.76% to Rs. 3.92 billion as compared to Rs. 5.21 billion recorded in the same period last year.
This was mainly a reflection of lower cement retention prices that restricted the impact of the slight expected increase in dispatches, whereas the local sales volume also saw a decline of 4% year on year.
The cost of sales of the company was reported at Rs. 4.03 billion as compared to Rs. 4.12 billion in the same period last year.
The company posted a gross loss of Rs. 105 million as compared a gross profit of Rs. 1.08 billion in the same period last year.
According to Topline Securities, gross loss emanated due to declining in local retention prices by 24% year on year and 5% quarter on quarter.
The finance cost of the company increased to Rs. 69.51 million up by 218% as compared to Rs. 21.86 million in the same period last year.
The distribution cost was down to Rs. 47.76 million from Rs. 53.88 million and administrative expenses decreased to Rs. 97.89 million as compared to Rs. 102.44 million in the same period last year.
The cement manufacturer reported a loss per share of Rs. 0.15 in Jan-Mar 2020 as compared to Rs. 0.45 in the corresponding period of 2019.
According to analysts, there will be a continuation of slow demand due to COVID-19 price competition and higher than expected coal prices.
However, FCCL’s share at the exchange closed at Rs. 17.35, up by 2.48% or Rs. 0.42 with a turnover of 35.52 million shares on Monday.