⚡ Flash Summary

Fauji Cement Company Limited (FCCL) reported a slight increase in profit after tax for the first quarter ended September 30, 2025, with Rs 3,286 million compared to Rs 3,246 million in the same period last year. The company maintained a net profit ratio of 14%. However, the gross profit margin decreased slightly to 32% from 34% in the same period last year, mainly due to lower sales prices. The company did not declare any cash dividend, bonus shares, or right shares for the quarter.

📌 Key Takeaways

• ✅ Profit after Tax increased to Rs 3,286 million from Rs 3,246 million YoY.
• 📊 Net profit ratio maintained at 14%.
• 📉 Gross Profit Margin decreased to 32% from 34% YoY.
• 💰 No Cash Dividend declared.
• 🚫 No Bonus Shares declared.
• 🚫 No Right Shares declared.
• ⚡️ Enhanced usage of local coal and alternative fuels contributed to cost optimization.
• ☀️ Increased solar power generation helped reduce power costs.
• 🏭 Revenue net increased to Rs 23,417.812 million from Rs 22,956.406 million YoY.
• 🚧 Finance cost decreased to (1,135.639) million from (1,675.497) YoY.

🎯 Investment Thesis

HOLD. The company has shown slight growth in profit, but the declining gross profit margin is a concern. Cost optimization efforts seem to be helping, but the long-term sustainability of these measures needs to be evaluated. A more detailed analysis of the sector and the company’s competitive position is necessary before making a buy or sell recommendation.