Revenue (₨ Billions)
FCCL's revenue grew dramatically after 2020, jumping from ₨24.3 billion to ₨80 billion by 2023, driven by the merger with Askari Cement and increased market demand.
Revenue Forecast (₨ Billions)
Revenue is projected to grow from ₨80 billion in FY2024 to ₨105 billion by FY2027, driven by increased volumes and modest price increases.
- ✓Increased capacity utilization (currently at 65%)
- ✓Export market development (targeting 10-15% growth)
- ✓Cost efficiencies from alternative fuels and solar power
- ✓Potential interest rate reductions by FY2026
- ✓Recovery in domestic construction activity
- !Prolonged economic stagnation limiting demand
- !Input cost inflation (coal, power, diesel)
- !PKR currency depreciation affecting imported materials
- !High interest rates impacting finance costs
- !Potential new taxes or regulatory changes
FCCL's earnings are poised to grow over 2025-2027, but likely at a measured pace tied to the macro environment. With major expansion projects completed, FCCL enters the next three years with 10.6 MTPA cement capacity installed, but was running at only ~65% utilization in FY2023 due to a slowdown in demand.
Management expects no significant uptick in domestic demand in FY2025, but anticipates a possible revival by late FY25 if interest rate cuts stimulate construction activity. By FY2027, if economic conditions normalize, FCCL could be selling 6-7 million tons annually (versus ~5.1 Mt in FY2024).
A conservative outlook would project EPS around ₨3.5-4.0 in FY2025, rising to ₨4-5 by FY2026 and potentially ₨5-6 by FY2027 if capacity utilization improves significantly.
| Company (Ticker) | FY2024 Revenue (₨ bn) | FY2024 Net Profit (₨ bn) | Net Profit Margin | EPS (₨) | Market Position |
|---|---|---|---|---|---|
| Fauji Cement (FCCL) | 80.03 | 8.22 | 10.3% | 3.35 | 3rd largest by capacity (10.6 MTPA) |
| Lucky Cement (LUCK) | 115.32 | 28.11 | 24.4% | 94.54 | 1st largest (15.3 MTPA) |
| Bestway Cement (BWCL) | 103.92 | 13.77 | 13.3% | 23.09 | 2nd largest (15.3 MTPA) |
| Maple Leaf (MLCF) | 66.45 | 5.27 | 7.9% | 4.98 | Mid-tier player (∼5.7 MTPA) |
Net Profit Margins (%)
FCCL's net profit margin of 10.3% is competitive in the industry, though below Lucky Cement's exceptional 24.4% margin.
Financial Scale: FCCL's revenue (₨80 billion) in FY2024 places it in the upper tier of the industry. It is smaller than Lucky and Bestway, but significantly larger than mid-sized firms like Maple Leaf or Cherat Cement.
Profitability: FCCL's net profit margin of ~10% is respectable, though trailing Lucky's exceptional 24% margin. Bestway's net margin (13.3%) is a closer benchmark – FCCL is slightly below this, partly due to heavier tax impacts and ramp-up costs.
Market Share: FCCL now holds about 14% of Pakistan's cement market share (by capacity) and about a 14% share in dispatches in its primary Northern region. Lucky and Bestway each account for ~18-19% of capacity.
Valuation: At current market prices, FCCL's P/E (~14×) lies between the low P/E of Lucky (~3-4×) and mid-range P/E of Maple (~7-8×). This suggests FCCL is valued for growth but also carries some risk-premium due to the macro environment.
FY2023 Demand
-16%
YoY decline in cement demand
April 2025
+7.6%
YoY increase in domestic dispatches
FY2025-2027 Forecast
3-5%
Annual growth in cement consumption
Cement demand in Pakistan is closely tied to economic growth, public development spending, and housing construction trends. Over the past few years, domestic demand has been volatile. After a boom in 2017-2018, demand cooled due to fiscal tightening and high interest rates.
FY2023 was challenging for domestic demand. High inflation, political uncertainty, and austerity measures led to a~16% YoY drop in cement demand nationwide. FCCL's capacity utilization dropped from 88% to 65%.
Encouragingly, early 2025 data shows signs of revival. According to the All Pakistan Cement Manufacturers Association (APCMA),April 2025 domestic cement dispatches were up 7.6% YoY (North region +9.4%). This suggests that demand may havebottomed out in 2024 and is starting to improve slightly.
Long-term Growth Drivers
- Housing shortfall: Pakistan has a housing deficit in the millions of units
- Infrastructure projects: Ongoing and planned projects (dams, highways, CPEC special economic zones)
- Demographics: A young, growing population and urbanization trend
In the near term (2025-2027), growth is expected to be moderate. Economic analysts project anuneven recovery – perhaps a 3-5% annual increase in cement consumption over the next couple of years, assuming GDP growth improves slightly and interest rates ease.
Estimated Product Revenue Contribution
Ordinary Portland Cement (OPC) dominates FCCL's revenue stream, with specialty products making up the remainder.
| Product Type | Description | Applications | Est. Revenue Contribution |
|---|---|---|---|
| Ordinary Portland Cement (OPC) | General purpose cement with compressive strengths up to 10,000 psi | General building construction, concrete infrastructure | ~85% |
| Sulfate Resistant Cement (SRC) | Specialized cement with high compressive strength (~9,500 psi) and low alkali content | Foundations, basements, sewage works, coastal projects, marine structures | 5-10% |
| Low Alkali Cement (LAC) | OPC with very low alkali content to prevent alkali-aggregate reactions | Specific concrete mixes or with reactive aggregates | ~2% |
| "Green Cement" (Pamir) | Eco-friendly cement produced with 20% lower CO₂ emissions | "Green building" projects with sustainability requirements | Small but growing |
- 1Domestic Sales (~90% of volume)
Higher revenue per ton (~₨19,000-20,000 per ton retail)
- 2Export Sales (~10% of volume)
Lower revenue per ton (US$45/ton FOB, ~₨13,000-14,000/ton)
- 3Bagged vs. Bulk Cement
Bagged for retail/individual consumers, bulk for large projects
- ✓Dual Brand Strategy
Products marketed under both "Fauji" and "Askari" brand names
- ✓Quality Positioning
Emphasis on high compressive strengths and durability
- ✓Sustainability Focus
Introduction of "Green Cement" positions FCCL as an innovator
FCCL's product portfolio is well-diversified within the cement category. By providing multiple cement types (OPC, SRC, etc.) and focusing on both bulk and bag markets, FCCL maximizes its reach. Each product line plays a role: OPC drives volume and scale, SRC and others fulfill specialty needs, and new products like Green cement position FCCL as an innovator.
The contributions to revenue align with the construction landscape of Pakistan – heavy on general purpose cement but with pockets of specialized demand. FCCL's ability to supply this range has supported its growth and will continue to do so, as it can service a wide array of projects under its unified operations.