Karachi January 26 2022: Fauji Fertilizer Bin Qasim hit lower circuit in today’s trading session at Pakistan Stock Exchange (PSX) as share price plunged by PKR 1.96 per share or 7.48 percent even after posting hefty profit of PKR 9.2 billion in 2021 but declares no dividend as per data reported by PSX.
Yearly financial results improved significantly in comparison to previous year 2020. The Company achieved PKR 19.7 billion profit from operations in comparison to PKR 10.4 profit in comparative year backed by revenue increase of 30 percent from PKR 98 billion to PKR 128 billion and increase in gross profit margin from 18.3 percent to 22.6 percnet primarily by rising international DAP prices.
Moreover, efficient working capital management resulted a reduction in finance cost by PKR 3.5 billion. Other expense went up by PKR 5.6 billion (including allowance for expected credit loss) due to increase in foreign exchange loss amid continuing surge of US dollar against Pak Rupee, impairment and expected credit loss on investment in FML and unwinding of GIDC liability. However, increase in other expenses was offset, to some extent, by gain of PKR 2.8B arising on sale of equity stakes in FWE- I & II and increased dividend income.
The Company successfully completed sale of equity investment in Foundation Wind Energy – I Limited and Foundation Wind Energy – II Limited (FWE-I & II) to Fauji Fertilizer Company Limited realising a gain of PKR 2.8 billion during the year. The Company booked unwinding cost/ re measurement gain on GIDC payable of PKR 1.2 billion and expected credit loss of PKR 751 million. Albeit, Fauji fertilizer Bin Qasim Limited (FFBL) ended year on a good note with overall profit after tax of PKR 9.2 billion compared to PKR 6.0 billion in 2020.
