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FFBL stages earnings turnaround due to higher DAP margins

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April 26, 2020 (MLN): Strong DAP offtake and prices helped Fauji Fertilizer Bin Qasim Limited (FFBL) in posting strong consolidated net profits of Rs 1.22 billion (EPS: Rs 0.87) in the first quarter ended March 31, 2021, against losses of Rs 2.90 billion (LPS: Rs 2.03) in the same period a year earlier.

The move to profits was helped by a 35.5% YoY rise in the net sales in 1QCY21 due to an uptrend in local DAP margins and dividend income support from its subsidies AKBL that announced a pay-out of Rs 3 per share in the last quarter, expanding gross margins to 24% from 8%, said Ailia Naeem, a Research Analyst at AKD Securities.

The company’s bottom line was further strengthened by lower finance costs as they came down by 54% YoY to Rs 1.30 billion amid a lower interest rate regime.

Meanwhile, the effective tax rate went up by 45% YoY to Rs 661 million during 1QCY21.

Consolidated Profit and Loss for the First Quarter ended March 31, 2020 ('000 Rupees)

 

Mar-21

March-20

% Change

Sales-net

 17,455,908

 12,879,987

35.5%

Cost of Sales

 (13,300,895)

 (11,821,750)

12.5%

Gross Profit

 4,155,013

 1,058,237

292.6%

Selling and distribution cost

 (1,191,266)

 (988,907)

20.5%

Administrative expenses

 (449,571)

 (459,179)

-2.1%

 

 2,514,176

 (389,849)

Finance costs

 (1,297,046)

 (2,824,558)

-54.1%

Unwinding of GIDC

 (345,886)

 –

Other operating expenses

 (191,105)

 (272,637)

-29.9%

Other Income

 –

 

Share of profit of associates and joint venture- net

 755,322

 807,552

-6.5%

Others

 448,126

 235,414

90.4%

Profit/ (Loss) before taxation

 1,883,587

 (2,444,078)

Taxation

 (661,288)

 (456,271)

44.9%

Profit/ (Loss) after taxation

 1,222,299

 (2,900,349)

Earnings/ (loss) per share – basic and diluted (Rupees)

 0.87

 (2.03)

 

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Posted on: 2021-04-26T14:36:00+05:00

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