⚡ Flash Summary

Fecto Cement Limited’s annual report for the year ended June 30, 2025, reveals a mixed performance in a challenging macroeconomic environment. While domestic dispatches experienced a slight decline, exports witnessed substantial growth. The company achieved improved profitability metrics despite lower volumes through higher average retention prices and cost optimization. Net profit nearly doubled, resulting in a significant increase in earnings per share. The Board has proposed a final cash dividend of 20% (Rs. 2/- per share), subject to shareholder approval.

📌 Key Takeaways

• 📉 Domestic dispatches declined by 3.1% to 37.021 million tons, reflecting subdued local demand.
• 🚀 Export dispatches surged by 88.18%, reaching 22,657 tons, driven by improved international demand.
• 💰 Average retention price increased by 3.36% to PKR 15,550 per ton, boosting revenue.
• 💡 Cost optimization led to a 1.0% reduction in average cost per ton to PKR 12,981.
• 📈 Gross profit increased by 28.24% to PKR 1.833 billion, with a margin of 16.52%.
• 💪 Net profit nearly doubled by 69.10% to PKR 608.692 million.
• ⭐ Earnings per share (EPS) significantly improved by 69.10% to PKR 12.14.
• 🏦 Company proposes a final cash dividend of 20% (PKR 2/- per share).
• ✅ Credit rating reaffirmed by PACRA at A- (Long-Term) and A2 (Short-Term) with a Stable Outlook.
• ☀️ 43% of power needs met through renewable sources (5 MW solar, 6 MW WHR).
• 💲 The company contributed approximately PKR 5.920 billion to the national exchequer.
• 🌍 Emphasis on ESG initiatives, diversity, and corporate responsibility continues.

🎯 Investment Thesis

A HOLD recommendation is given as there are both positive and negative indicators. The company is improving operations but faces strong headwinds and uncertainty. Additional information is needed to determine if operations can overcome risks.