KARACHI: Fecto Cement Limited (PSX: FECTC) reported a strong improvement in profitability for the nine months ended March 31, 2026, driven by higher sales volumes and improved operational efficiency. However, the company’s earnings for the third quarter declined compared to the same period last year, reflecting margin pressures despite revenue growth.
According to the financial results approved by the company’s Board of Directors, Fecto Cement posted a net profit of Rs613.59 million for the nine-month period, compared with Rs481.54 million in the corresponding period last year, representing a year-on-year increase of nearly 27%. Earnings per share (EPS) rose to Rs12.23 from Rs9.60 a year earlier.
For the quarter ended March 31, 2026, the company earned a net profit of Rs23.43 million, down from Rs33.86 million in the same quarter of last year. Quarterly EPS declined to Rs0.47, compared with Rs0.68 previously. The Board did not recommend any cash dividend, bonus shares, or right shares.
Net sales for the third quarter increased 19.8% year-on-year to Rs3.04 billion, supported by a 22.15% rise in total cement dispatches. Gross profit improved to Rs185 million from Rs165.1 million, although the gross profit margin narrowed to 6.08% from 6.50% due to lower average retention prices.
The company’s operational performance remained robust during the quarter. Cement production increased 21.45% to 208,639 tons, while clinker production more than doubled, rising 104.71% to 199,661 tons. Local dispatches climbed 24.48% to 209,946 tons, lifting capacity utilization to 83.46% from 68.72% in the same period last year. Market share also improved, reflecting stronger domestic demand and better operational efficiency.
Management noted that higher production volumes contributed positively to revenue growth, although the benefits were partly offset by lower selling prices. The average retention price declined by approximately 1.93%, while administrative and distribution expenses increased due to inflationary pressures. On the positive side, finance costs fell 14.27%, supported by improved cash flow management.
In its review of the operating environment, the company highlighted signs of recovery in Pakistan’s economy and the cement sector. Industry dispatches during the first nine months of FY2026 increased by 9.8%, while domestic dispatches rose 10.61% and exports expanded 6.25%. Fecto Cement maintained capacity utilization above 80%, outperforming the industry average despite ongoing competitive pressures.
Looking ahead, the company expects gradual improvement in domestic cement demand, supported by infrastructure development, easing inflation, and a more stable macroeconomic environment. However, management cautioned that elevated input costs and intense competition, particularly in the northern region, will continue to pose challenges. Fecto Cement said it remains focused on operational efficiency, cost optimization, and disciplined financial management to sustain long-term growth.
