Islamabad, Fauji Cement Company Ltd (FCCL) and DG Khan Cement Company Ltd (DGKC) are set to disclose mixed financial results for the third quarter of fiscal year 2024. FCCL is expected to see a decline in earnings due to increased depreciation expenses from a new cement line, while DGKC forecasts an improvement following a high repair and maintenance charge in the previous quarter.

According to JS Global, the third-quarter financial meeting for FCCL is scheduled for April 23, 2024. The company anticipates a quarterly decrease in revenue to Rs19.4 billion, down 3%, largely due to a 10% reduction in cement dispatches. Higher depreciation costs are also expected to contribute to a 4 percentage point quarter-over-quarter decline in gross margins. FCCL's net margins are projected to fall by 4.8 percentage points to 8.4%.

DGKC, on the other hand, is likely to present a more positive earnings report in its meeting on April 19, 2024. The company expects to post earnings of Rs725 million, translating into an earnings per share increase of 84% from the previous quarter. This boost is primarily attributed to the absence of significant maintenance expenses incurred earlier. Additionally, lower fuel and power costs are anticipated to support an improvement in gross margins. DGKC's revenue is expected to be around Rs13.3 billion, a 27% drop quarter-over-quarter, with expected gross margins of approximately 19.6%.

Both companies have integrated international coal into their energy mixes during the quarter, which has helped in reducing their fuel and power expenditures. Despite this, both have experienced a sequential decline in local cement dispatches in the March quarter, reflecting continued challenges in the market.