Fauji Cement Company Limited (FCCL): Earnings overperform with better margins – By IIS Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Fauji Cement Company Limited (FCCL) has announced its 1QFY21 financial result with an earnings of PKR 696mn (EPS: PKR 0.50) better than our and consensus forecast.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The variation is attributable to higher than expected gross margin which clocked in at 21.6% against our expectation of 17.6% where deviation mainly stems from revenues, indicating a higher retention price than our forecast.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Finance cost during the quarter increased by 7% YoY despite notable reduction in policy rate which could likely be due to increase in borrowings.</span></li><li><span style="font-family:Arial, Helv...