Cement players in Pakistan continue to report losses due to increase in cost of sales and finance charges during first half of the current financial year 2019-20. Fauji Cement continued this trend reporting financial losses today.
Fauji Cement Co Ltd (FCCL) announced its financial results for the half year ended 31 December 2019 with a net profit of PKR482.18m (US$3.13m), which decreased by 73.6 per cent YoY, as compared to PKR1.82bn in the same period last year. The fall in profit was attributed to an increase in cost of sales, which rose to PKR8.57bn from PKR7.83bn during this accounting period.
The finance cost reportedly also on higher side at PKR80m and total sales plunged to PKR9.5bn from PKR10.43bn during this financial period. FCCL incurred a distribution cost of PKR 04m against PKR90m. The administrative expenses also increased to PKR262m from PKR192m in the same period previous year.