Rawalpindi: Fauji Cement Company Limited (FCCL) held a corporate briefing yesterday to discuss its financial results for FY24 and the future outlook, emphasizing its continued focus on cost optimization.

According to JS Global, FCCL has maintained stable gross performance in recent quarters, primarily through improved cost management strategies. The company boasts one of the highest operating profits per bag in the industry, and it is actively working to optimize its fuel and power arrangements further. In its pursuit of increased efficiency, FCCL has enhanced its green captive power capacity by installing a 12.5 MW solar plant in FY24. Plans for an additional 15 MW solar expansion are underway, with 5 MW scheduled by October 2024 and another 10 MW by February 2025, involving a projected capital expenditure of Rs1.5 billion.

FCCL’s recent Greenfield capacity expansion at DG Khan has elevated its production capacity to 10.6 million tons, making it the third-largest cement producer in the country. This expansion positions the company to capture a larger market share as overall demand is expected to improve. With strong potential for earnings growth, JS Global maintains a ‘Buy’ recommendation on FCCL, setting a target price of Rs35, based on the company’s resilience and management’s commitment to enhancing cost efficiencies.