Rawalpindi: Fauji Cement Company Ltd. (FCCL) today announced record earnings for the first quarter of fiscal year 2025, achieving the highest quarterly profit in its history. The company’s earnings reached PkR3.2 billion, marking a 24% increase from the same period last year, largely driven by improved gross margins and increased other income.

According to AKD Securities Limited, the significant growth in earnings was anticipated, with a notable contribution from a 13% rise in revenue to PkR23.0 billion. This increase was primarily due to a 16% year-over-year rise in retention prices, despite a slight decline in cement offtakes, which fell by 1% to 1.33 million tons from 1.34 million tons in the prior year.

Gross margins for the quarter improved to 34.3%, up from 31.1% last year, supported by the higher retention prices and a 20% reduction in grid tariffs, reflecting the company’s 48% dependence on grid power. Other income for the quarter significantly increased, tripling to PkR494 million, mainly due to a substantial increase in cash and short-term investments.

However, the finance costs associated with the company’s expansion surged by 48% to PkR1.7 billion. The effective tax rate (ETR) stood at 38%, up from 35% last year, with a notable increase in the tax rate in the fourth quarter of FY24, reaching 74% due to a deferred tax charge stemming from changes in the income tax treatment on exports.