Afghan Border Ban Hits Fauji Cement Exports

Fauji Cement Firm Limited (PSX: FCCL) noted a net profit of Rs.

Key points

• The effective tax rate stood at 38 percent, compared to 37.9 percent in the corresponding period last year and 22.8 percent in the previous quarter.
• Net sales rose 11 percent year over year, backed by a 12 percent growth in local dispatches.
• Nevertheless, overall dispatches grew by only 5 percent year over year, primarily due to the absence of exports after the Afghan border closure.
• Distribution expenses rose 17 percent year over year, mainly due to higher oil costs.
• Finance costs declined 42 percent quarter over quarter, reflecting early debt repayment during the quarter.

Fauji Cement Firm Limited (PSX: FCCL) noted a net profit of Rs. 4.96 billion for the first quarter of fiscal year 2026-27 (1QFY27), up 51 percent year over year but down 8 percent quarter over quarter.

Earnings per share (EPS) clocked in at Rs. 2.02, in line with expectations.

Nevertheless, overall dispatches grew by only 5 percent year over year, primarily due to the absence of exports after the Afghan border closure. Pakistan Eyes $500 Million Bond Raise Without Global Bank Guarantees.

Gross margins improved to 36 percent, backed by higher cement retention costs against the backdrop of rising cement costs and cost optimization initiatives, including the government's incremental electricity consumption package and in-house production of polypropylene (PP) bags.

Distribution expenses rose 17 percent year over year, mainly due to higher oil costs. It pushed up transportation costs.

Meanwhile, finance costs declined 42 percent quarter over quarter, reflecting early debt repayment during the quarter. Long-term and short-term borrowings fell by 10 percent and 92 percent quarter over quarter, respectively.

Notably, the effective tax rate stood at 38 percent, compared to 37.9 percent in the corresponding period last year and 22.8 percent in the previous quarter. Stay Connected with ProPakistani.

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Taken together, the developments around afghan Border Ban Hits Fauji Cement Exports point to a situation that is still moving, and the coming days should bring more clarity.