Falling profit of fauji cement

The profit of Fauji cement fell 81.5 percent

The profit of Fauji cement fell 81.5% in the last quarter of 2019. The main reason of this fall is increased cost of production and decreasing margins. The company earned Rs 189.4 million profit.  The company had reported a profit of Rs1.02 billion in the same period of 2018. Earnings per share of the cement manufacturer fell to Rs0.14 in Oct-Dec 2019 compared to Rs0.74 in the corresponding period of 2018.

Gross profit of the company plunged over 75% to Rs 392 million compared to Rs1.6 billion in the second quarter of FY19.

Net sales of the company rose from Rs5.1 billion in the second quarter of the fiscal year 2018-19 to Rs5.3 billion in the quarter under review, a rise of 4.4%. “Topline of Fauji Cement witnessed an uptick of 4% year-on-year to Rs5.3 billion during the second quarter of the fiscal year 2019-20, led by a 20% jump in cement dispatches to 925,000 tons, which offset the impact of lower retention prices,” stated a report of a leading broker house.