Fauji Fertilizer Profit Up by 43% to Rs. 36.4 Billion in First 9 Months of 2023

Fauji Fertilizer Company Limited (PSX: FFC) has announced its financial results for the nine months that ended on September 30, 2023, (9MCY23), wherein the company posted a consolidated profit after tax (PAT) of Rs. 36.39 billion, up 42.8 percent year-on-year (YoY) from Rs. 25.5 billion in the same period last year (SPLY).

In Q3 2023, PAT arrived at Rs. 15.6 billion, up 55 percent YoY from Rs. 10 billion in 3QCY22. Along with the result, the company announced an interim cash dividend for the quarter of Rs. 3.98 per share which is in addition to interim dividends already paid at Rs. 7.41 per share.

In a brief commentary, FFC attributed the earnings to various initiatives including its “drive for cost economization and efficiency optimization, especially in view of persistently high rates of inflation, financial cost and weak rupee”.

In 9MCY23, the net sales of the company arrived at Rs. 134.7 billion, up by 45 percent YoY on the back of higher prices and higher offtakes (Urea: 17.6 percent/27.5 percent QoQ/YoY and DAP: 16.4 percent/3x QoQ/YoY), according to AKD Securities Limited.

Gross margins clocked in at 43 percent in 9MCY23 and 37.5 percent in 3QCY23.

Other income has increased by 41 percent YoY to Rs. 11.5 billion in 9MCY23, while the finance cost of the company surged by 25 percent YoY to Rs. 4.9 billion during the period in review. FFC paid Rs. 19.1 billion in taxes during the 9-month period.

The company posted earnings per share (EPS) of Rs. 27.89 in 9MCY23 and an EPS of Rs. 11.92 in 3QCY23. The company’s scrip at the bourse closed at Rs. 102.5, down 3.26 percent or Rs. 3.46 with a turnover of 1.66 million shares on Wednesday.

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