Karachi October 27, 2021: Fauji Fertilizer Company reported consolidated record profit of PKR16.6 billion in September quarter. FFC announced its 3QCY21 financial results today, wherein the company posted healthy profitability surge of 39% YoY to PKR 5.07/share, as against PKR 3.64/share in 3QCY20. Cumulatively, for 9MCY21 EPS stood at PKR 12.49, up 15% YoY.
Along with the results, company announced an interim DPS of PKR 3.75 which took 9MCY21 payout to PKR 12.49/share says Muhammad Atif research analyst at Akseer Research.
Net sales of the company increased by 20% YoY during 3Q2021, owing to increase in Urea offtakes by 22% YoY to 690k tons and increase in DAP prices by 72% YoY. Distribution expenses increased by 21% YoY to Rs2,087mn in 3Q2021 driven by increase in volumetric sales of Urea and higher fuel cost.
The result was higher than our expectations due to lower GIDC related charge of PKR 616mn the company paid during 3Q versus our estimates of PKR 1.7bn. It was also down by 49% QoQ.
Other income increased by 79% YoY during the quarter to PKR 1.7bn, on back of dividend from subsidiaries, associates and better return on investment portfolio.
Going forward the Company remains exposed to working capital constraints attributable to the GIDC settlement besides unsettled subsidy claims and accumulating GST refunds.
Profitability of the Company also remains pressurized by the unjust disallowance of business expenditure caused by sales to dealers who are not registered under the Sales Tax Act.
