Fauji Fertilizer Bin Qasim Limited (FFBL) posted a loss of Rs. 5.43 billion in 1QCY23 compared to profit after tax of Rs. 1.627 billion reported in the same quarter of the previous year.
According to the company’s financial results for the quarter ended March 31, 2023, the company recorded loss per share of Rs. 4.20 in 1QFY23 compared to earnings per share of Rs. 1.26 in 1QFY22.
The company’s net sales jumped by 27 percent on a year-on-year basis to Rs. 31.523 billion in 1QFY23 on account of a hike in urea and DAP prices by 45 percent and 10 percent year-on-year respectively coupled with growth in DAP offtake by 11 percent on a yearly basis. However, urea offtake plummeted by 25 on a yearly basis in 1QFY23.
On a quarter-on-quarter basis, the topline reduced by 52 percent amid a decline in urea and DAP offtake by 44 and 54 percent respectively.
Gross margins clocked in at 7.12 percent in 1QFY23, down 15.6 on a year-on-year basis owing to inventory losses during the quarter.
The company recorded an exchange loss of Rs. 4.6 billion in 1QFY23 compared to Rs. 566 million in the same quarter of the previous year, due to payment of foreign exchange liabilities on account of import of phosphoric acid.
Other income decreased by 19 percent on a year-on-year basis to Rs. 898 million in 1QFY23 due to lower dividend income from subsidiaries.
FFBL’s financial charges surged by 3.5x on a yearly basis and clocked in at Rs 2.488 billion in 1QFY23 owing to higher interest rates along with higher short-term borrowings for the purpose of working capital requirements.
The company recorded taxation at Rs. 340 million in the quarter under review compared to Rs. 924 million in the same quarter of the previous year.
