Fauji Fertiliser Bin Qasim Limited (FFBL) has reported a net profit of Rs. 1.783 billion for the quarter ended June 30, calendar year (CY) 2022, showing a decrease of 32 percent year-on-year (YoY) compared to a net profit of Rs. 2.609 billion in the same period last year.
According to the company’s financial results announced on Monday, in 2QCY22, the company’s results came higher than industry expectations due to better gross profit margins. For January-June CY22, the company’s earnings have increased to Rs. 3,410 million, down 12 percent YoY.
FFBL posted net revenue of Rs. 46.149 billion during the quarter, depicting a massive increase of 173 percent YoY owing to the increase in the offtake of Di-ammonium Phosphate (DAP) by 73 percent YoY and DAP prices by around 85 percent.
The fertilizer manufacturer posted a profit after tax (PAT) of Rs. 1,783 million in 2QCY22 compared to PAT of Rs. 2.609 billion in 2QCY21, down by 32 percent YoY while up by 10 percent on a quarter-on-quarter basis. The gross margins clocked in at 19 percent in 2QCY22 with the majority of the deviation coming from lower than expected cost of sales.
The company recorded a ten-fold increase in other expenses to Rs. 2.922 billion during the quarter owing to exchange loss on phosphoric acid payables over the sharp rupee devaluation against the dollar. The other income was increased by 31 percent YoY to Rs. 3.251 billion in 2QCY22 given a higher dividend income and higher interest income.
During the period in review, the financial cost of the company increased by 49 percent YoY due to higher debt borrowing and higher interest rates.
Lastly, FFBL reported earnings per share at Rs. 1.38 during the period under review compared to EPS of Rs. 2.03 during the same period last year.
