FCCL Current Updates

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FCCL Current Updates
« on: June 09, 2016, 11:32:01 AM »
FCCL Company has recently announced its quarterly results, observed 64% significant
growth in bottom-line earnings to be clocked in Rs 4.33 billion(EPS : Rs 3.14) in 9MFY16
against last year Rs 2.65 billion(EPS :Rs 1.99) during FY15. This accretion in profits
undoubtedly adheres to existing construction boom creating surge in domestic
demand coupled with reduced cost of production and shattering yields going forward.
On quarterly basis, FCCL encountered slight drop in earnings but managed to perform
substantially well supplementing industry growth.

FCCL is depicting improvement in top-line and bottom-line earnings with 13% and 64%
respectively in 9MFY16 against previous year 9MFY15 complimenting industrial dispatches
growth of 10% on YOY basis. Marching towards quarterly analysis, local dispatches
for the quarter 3QFY16 recorded at 651k tons compared to 2QFY16 last quarter's
672k tons; this drop in local dispatches dragged down profits to 6% backed by
stagnant cement prices. Though decline on sequential basis, sales delineating better
position encouraged by subsided cost of production. The export sales deteriorated 12%
on quarter basis and stood at 87k tons during 3QFY16 against 2QFY16 last quarter's
99k tons.

Savings from Waste Heat Recovery Plant became evident driven by benign coal prices
which revolved around US$ 51.50/ton and receded by 17% on YOY basis. Recent downward
trend in FO prices favoured the situation in nourishing margins. Lower cost of
Fuel reduced power cost by 4% during 9MFY16 compared to 9MFY15 on YOY basis.

We have negative to neutral stance for FCCL and recommend only long term investors
as stock to remain volatile in next few days. We have reduce our Dec'16 target price
from Rs 49/share to Rs 41/share after incorporating 6 month closure of line 2.

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Re: FCCL Current Updates
« Reply #1 on: June 09, 2016, 11:41:07 AM »
Thank you for updating us regarding FCCL :)

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Re: FCCL Current Updates
« Reply #2 on: June 09, 2016, 11:44:25 AM »
Have a great day

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Offline diya_MJ

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Re: FCCL Current Updates
« Reply #3 on: June 09, 2016, 11:23:50 PM »
That's the reasons why FCCL suddenly dropped its value

 

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