Fecto Cement : Transmission of Quarterly Report for the Period Ended March 2023.

CONTENTS

Company Information	2
Directors' Review	3
Condensed Interim Statement of Financial Position	6
Condensed Interim Statement of Profit or Loss	7
Condensed Interim Statement of Comprehensive Income	8
Condensed Interim Statement of Changes in Equity	9
Condensed Interim Statement of Cash Flows	10
Notes to the Condensed Interim Financial Statements	11
Directors' Review Urdu	21

Fecto Cement Limited-Interim Report March 31, 2023 1

COMPANY INFORMATION
	BOARD OF DIRECTORS		AUDIT COMMITTEE
Mr. Aamir Ghani	Chairman	Mr. Jamil Ahmed Khan	Chairman
Mr. Mohammed Yasin Fecto	Chief Executive	Mr. Rohail Ajmal
Ms. Saira Ibrahim Bawani		Mr. Mohammed Anwar Habib
Mr. Khalid Yacoob
Mr. Mohammed Anwar Habib
Mr. Jamil Ahmed Khan		HUMAN RESOURCE &
Mr. Rohail Ajmal (Nominee of Saudi Pak	REMUNERATION COMMITTEE
Industrial & Agricultural Investment Co. Ltd.)	Mr. Jamil Ahmed Khan	Chairman
			Mr. Khalid Yacoob
CHIEF FINANCIAL OFFICER		Mr. Mohammed Anwar Habib
Mr. Abdul Samad, FCA
			AUDITORS
COMPANY SECRETARY		Rahman Sarfaraz Rahim Iqbal Rafiq,
	Chartered Accountants
Mr. Abdul Wahab, FCA
LEGAL ADVISOR		SHARE REGISTRAR
Abid & Khan Advocates and Legal Advisor	F. D. Registrar Services (Pvt) Ltd.
House # 303-D, Street # 29		1705, 17th Floor, Saima Trade Tower-A
Sector F-11/2		I. I. Chundrigar Road
Islamabad		Karachi-74000
			Phone Nos. ([phone]
REGISTERED OFFICE		FACTORY
Plot # 60-C,Khayaban-e-Shahbaz,		Sangjani, Islamabad
Phase VI, Defence Housing Authority,		Phone Nos. ([phone]
Karachi-75500, Pakistan
Website: www.fectogroup.com		BANKERS
Phone Nos.(+ 9221) 35248921-4
Fax: (+ 9221) 35248925		Askari Bank Limited
MARKETING OFFICE		Habib Metropolitan Bank Limited
	MCB Bank Limited
339, Main Peshawar Road
	National Bank of Pakistan
Chairing Cross Service Road		Silk Bank Limited
Westridge-1,
Rawalpindi
Phone Nos. ([phone]
2	Fecto Cement Limited-Interim Report March 31, 2023

DIRECTORS' REVIEW

Your Directors are pleased to present before you their report together with Un Audited Condensed Interim Financial Statements of the Company for the period ended March 31, 2023.

INDUSTRY OVERVIEW

During the first nine months of current financial year ending June 30, 2023, overall sales volume of the industry reduced by 17.69% as compared to same period last year, with total sales volume of 33.60 million tons as against 40.82 million tons of same period last year. During the quarter, overall sales volume of the industry reduced by 11.38% with sales volume of 11.84 million tons as against 13.36 million tons of same quarter last year.

Local sales volume of the industry for the nine months and quarter was of 30.56 million tons and 10.53 million tons respectively as against 36.17 million tons and 12.11 million tons of same periods last year witnessing reduction of 15.51% and 13.05% for the respective periods. On export side, industry achieved sales volume of 3.04 million tons and 1.30 million tons in nine months and quarter respectively as against sales volume of 4.6 million tons and 1.26 million tons of same periods last year. In nine months period, exports reduced by 33.91 % whereas on quarter to quarter it increased by 3.17%.

During nine months period, overall sales volume of plants located in north reached to 25.83 million tons with local sales volume of 25.05 million tons and exports volume of 0.78 million tons respectively. Total sales volume of plants located in north hence reduced by 15.65%, out of which local sales volume reduced by 16.33% whereas exports increased by 14.56%.

COMPANY'S PERFORMANCE

OPERATING

During nine months, company produced 497,176 tons of clinker and 493,854 tons of cement as against 456,592 tons of clinker and 536,756 tons of cement of same period last year registering increase in production of clinker by 8.89% and reduction in production of cement by 7.99% respectively. In current quarter company produced 162,579 tons of clinker and 178,018 tons of cement as against 121,350 tons of clinker and 171,530 tons of cement of same period last year. Production of clinker and cement hence, increased by 33.98% and 3.78% during quarter under review.

Overall sales volume of the Company for the nine months reduced by 8.91% out of which local sales volume reduced by 9.38% whereas exports increased by 3.38%. For the quarter total sales volume increased by 1.43% out of which local volume increased by 1.40%, whereas exports increased by 3.34%.

Fecto Cement Limited-Interim Report March 31, 2023 3

FINANCIAL

Total net sales revenue of the Company for the nine months period increased to Rs. 6,551million as against Rs. 4,738 million of same period last year. This increase in term of percentage comes to 38.27% as against reduction in volume by 8.91%.

Net local sales revenue for the nine months period increased to Rs. 6,329 million as against Rs. 4,626 million of same period last year witnessing a growth of 36.81% as against reduction in local sales volume by 9.38%. Main reason for increase in local sales revenue was rising of prices to pass on higher cost impact of coal, electricity and other input cost materials. Export revenue for the nine months period increased to Rs. 223 million as against Rs. 110 million of same period last year witnessing a growth of 102.73 % as against increase in volume by 3.38%. Export prices improved during the nine months period due to depreciation of PKR against USD.

Overall Cost of sales for the nine months increased to Rs. 6,227 Million as against Rs. 4,156 million of same period last year registering increase of 49.83% though overall sales volume reduced by 8.91%. Main reasons for increase in cost of sales were higher fuel and power cost. Increase in cost of electricity continued its upward trend due to imposition of multiple charges by the Government. Prices of Afghan coal continued to increase due to sliding of PKR against USD.

Due to higher increase in costs as against increase in selling price, the Company during the nine months and quarter achieved gross profit of Rs. 324 million and Rs. 150 million respectively as compared to gross profit of Rs. 582 million and Rs. 169 million of same periods last year. Finance cost increased during the period due to successive increase in discount rate by the SBP.

Company suffered loss before tax of Rs. 110 million during Nine Months as against profit before tax of Rs. 257 million of same period last year. During the quarter under review, Company achieved profit before tax of Rs. 17 million as against profit before tax of Rs. 46 million of same period last year.

The Company suffered loss after tax of Rs. 115 million during nine months whereas in current quarter it achieved profit after tax of Rs. 7 million as against profit after tax of Rs. 182 million during nine months and profit after tax of Rs. 33 million during quarter respectively.

The Company suffered loss per share of Rs. 2.29 for the Nine Months as against earnings per share of Rs. 3.64 during same period last year. During current quarter the Company achieved earnings per share of Rs. 0.14 as against earnings per share of Rs. 0.65 of same periods last year.

4 Fecto Cement Limited-Interim Report March 31, 2023