April 27, 2023 (MLN): The profitability of Fauji fertilizer company Ltd. (PSX: FFC) has jumped by 23.9% YoY to clock in at Rs7.73 billion [EPS: Rs6.08] in 1QCY23 against the profits of Rs6.23bn [EPS: Rs4.90] reported in the same period last year (SPLY).
Along with the result, the company announced an interim cash dividend for the quarter of Rs 4.26/share i.e. 42.60%.
Going by the results, the topline of the company stood at Rs36.40bn in 1QCY23, registering 38.3% YoY growth compared to Rs26.31bn in SPLY.
During the review period, the cost of sales inched up but was lower than the sales growth, which translated to a higher gross profit of Rs14.57bn, up by 55.7% YoY.
The other income of the company posted a meager rise of 2.5% YoY and stood at Rs3.54bn as compared to Rs3.45bn in SPLY, owing to the increase in interest rates which enabled the company to earn income on deposits.
Despite macroeconomic challenges like high-interest rates, increased GST rates of 18% to 25%, and continued devaluation of the Rupee, the company managed to improve its profitability.
On the expense side, operating expenses continued their upward trajectory, posting a 47.6% YoY growth to stand at Rs1.07bn in 1QCY23.
The company also incurred a loss allowance on subsidy receivable from GoP of Rs200m.
On the taxation front, the company paid 2.04x YoY higher taxes worth Rs4.21bn as tax payments against Rs2.06bn paid in the corresponding period of last year
|
Unconsolidated Profit and Loss Account for the quarter ended March 31, 2023 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-23 |
Mar-22 |
% Change |
|
Turnover |
36,405,816 |
26,315,351 |
38.3% |
|
Cost of sales |
(21,831,206) |
(16,957,064) |
28.7% |
|
Gross Profit |
14,574,610 |
9,358,287 |
55.7% |
|
Distribution cost |
(3,055,823) |
(2,186,342) |
39.8% |
|
|
11,518,787 |
7,171,945 |
60.6% |
|
Finance cost |
(1,464,299) |
(1,072,181) |
36.6% |
|
The unwinding of GIDC liability |
(382,614) |
(529,749) |
-27.8% |
|
Loss allowance on subsidy receivable from GoP |
(200,000) |
0 |
– |
|
Other expenses |
(1,073,360) |
(727,270) |
47.6% |
|
|
8,398,514 |
4,842,745 |
73.4% |
|
Other income |
3,544,619 |
3,458,781 |
2.5% |
|
Profit before taxation |
11,943,133 |
8,301,526 |
43.9% |
|
Provision of taxation |
(4,213,000) |
(2,062,000) |
104.3% |
|
Profit for the year |
7,730,133 |
6,239,526 |
23.9% |
|
Earnings per share – basic and diluted (Rupees) |
6.08 |
4.90 |
– |
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Posted on: 2023-04-27T17:02:09+05:00
