Islamabad April 26 2024; Fauji Fertilizer Bin Qasim Limited exhibited robust financial performance, reporting its highest-ever first quarter profit after tax of Rs. 4.3 Bn as compared to the loss alter tax 01 Rs. 5.4 Bn in same quarter last year (SQL V).
“This performance is attributed to higher international DAP margins, significant forward sales and higher DAP sales volume 01 179KT (2023: 127KT) as DAP production continued throughout the quarter (2024: 177KT vs 2023: 52KT), owing to deferment of plant turnaround, which is now performed on alternate years. DAP sales include 10KT of imported DAP” states Company Chief Financial Officer Muhammad Javed Akhtar.
“Going forward, the supply of allocated volumes of gas and its pricing, DAP price trend in the international phosphate market, domestic DAP market size and stability of Pak Rupee against the US Dollar will remain critical lor the Company’s financial performance” says Company Chief Executive Officer Arif Ur Rehman.
The Company also did not incur significant exchange loss during the quarter due to stability in Pak Rupee- Dollar parity, which had adversely impacted the results during SQL Y by Rs. 4.6 Bn.
Management proactively managed the working capital, leading to substantial reduction of finance cost by Rs. 1.5 Bn as compared to SQL Y. On the other hand, significant forward sales helped in improving cash flow, resulting in increase in bank deposit income by Rs. 2.2 Bn as compared to SQL Y. Other income also includes dividend 01 Rs. 0.8 Bn received from Askari Bank Limited.
On a consolidated basis, the Group is reporting a profit after tax of Rs. 7.6 Bn, marking a significant improvement from a loss of Rs. 4.6 billion in SOL Y. This upswing is primarily attributed to the first-quarter profit by the Parent Company (FFBL). The improved financial performance of our joint venture (PMP) has also contributed a prolit alter tax 01 Rs. 1.7 Bn in the consolidated results as compared to a loss 01 Rs. 1.8 Bn in SPLY.
Gas curtailment continues to be the biggest challenge for FFBL which has adversely allected Urea production. The Company received 40% less gas against its allocated volume during the quarter. We strongly urge the Government to prioritize this sector lor gas supply to avoid Fertilizer shortage in the country and save scarce foreign exchange on import of Urea.
As part of its business sustainability growth initiative, the Company is expanding its product portfolio by introducing Boron Fortified DAP to enhance yield, promote sustainable agriculture and strengthening the market share.
