At our target price of PKR42/sh the scrip offers a total return of 23%, indicating our. BUY stance on the scrip. Financa
BMA Flashnote FCCL: FY15 EPS clock in at PKR2.91, up 57%YoY
Tuesday September 1, 2015
FY15 earnings of the company clocked in at PKR4.1bn (EPS: PKR2.91) compared to PKR2.6bn (EPS: PKR1.8), representing a growth of 57%YoY.
The growth in earnings was led by 300bps expansion in margins and 32% decline in finance cost. Furthermore, lower effective tax rate at 28% in FY15 compared to 42% in FY14 also contributed to the growth.
On a quarterly basis, earnings of the company settled at PKR1.5bn (EPS: PKR0.92), up 3xYoY and 49%QoQ. The growth in earnings can be attributed to i) 18%QoQ growth in sales, ii) 32%QoQ decline in finance cost, iii) lower effective tax rate at 23% and iv) 600bps surge in gross margins to 43%.
Increase in gross margins during 4QFY15 can be attributed to commissioning of the company’s waste heat recovery plant and declining coal cost.
The result also accompanied a final cash dividend of PKR1.5/sh, taking full year FY15 payout to PKR2.5/sh.
At our target price of PKR42/sh the scrip offers a total return of 23%, indicating our BUY stance on the scrip
Financaial Summary 4QFY15
3QFY15
S
4QFY14
S
Sales
5,224
4,426
18%
4,994
5%
G.P
2,232
1,626
37%
1,806
24%
42.7%
36.7%
6.0%
36.2%
6.6%
PBT
1,908
1,301
47%
1,374
39%
PAT
1,464
980
49%
630
132%
EPS
0.92
0.74
25%
0.30
207%
DPS
1.50
‐
0.75
Gross margins
‐
‐ Source: KSE
Sajjad Hussain
[email protected] +92 111 262 111 Ext: 2062
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