Karachi: Cement producers Fauji Cement Company Ltd (FCCL), Kohat Cement Ltd (KOHC), and Cherat Cement Ltd (CHCC) are expected to report contrasting earnings results for the third quarter of fiscal year 2026, with FCCL showing significant improvement, KOHC facing a decline, and CHCC maintaining stable earnings.
According to JS Global, FCCL is projected to see its earnings per share (EPS) rise to Rs1.56, marking a turnaround from Rs0.87 in the same quarter last year. This improvement is attributed to an 18% increase in domestic dispatches, enhanced gross margins due to higher retentions, increased other income, and reduced finance costs. Conversely, KOHC is expected to report a decrease in EPS to Rs2.27, an 11% drop year-over-year, largely due to reduced margins amid rising coal costs and a slight decline in dispatches. CHCC's earnings are anticipated to remain steady at Rs8.65 per share, showing little change from the previous year.
Sequentially, all three companies are forecasted to experience a dip in profitability, with FCCL, KOHC, and CHCC seeing declines in earnings of 5%, 19%, and 17%, respectively, primarily as a result of decreased quarter-over-quarter dispatches.