April 29, 2024 (MLN): Fauji Fertilizer Company Limited (PSX: FFC) recorded an increase of 36.1% YoY in its profitability during the first quarter of 2024, earning a profit after tax of Rs10.52 billion [EPS: Rs8.27], compared to a profit of Rs7.73bn [EPS: Rs6.08] in the same period last year (SPLY).
Profitability in dollar terms at $38 million, however, remained static at the level of 2021.
Along with the results, the company announced an interim cash dividend of Rs5.5 per share.
The company's manufacturing facilities operated above capacity and produced 654,000 tonnes of Sona Urea, which was 3% higher than same period last year.
Sona urea sales stood at 661,000 tonnes, 5% higher than 2023, while the company also marketed 94,000 tonnes urea imported by the government for steady supply of urea to the farmers.
Aggregate urea sales of the company thus stood at 755,000 tonnes compared to 631,000 tonnes of same period last year.
Higher sales volume besides increase in selling prices due to significant escalation in gas prices towards close of last year resulted in higher sales revenue of Rs58.4bn compared to Rs36.41bn in SPLY.
The cost of sales also rose by 88.4% led by high cost of imported urea, inflation and higher gas prices
The gross profit increased by 18.6% YoY to Rs17.29bn in Q1 2024.
The gross margins, however, worsened to 29.60% as compared to 40.03% in SPLY.
During the period under review, other income increased significantly by 2.9x YoY to stand at Rs10.28bn in Q1 2024 as compared to Rs3.54bn in SPLY.
On the expense side, the company's Selling And Distribution Expenses rose 69.9% YoY to Rs5.19bn and Other Operating Expenses rose 69.9% YoY to Rs2.84bn.
The rise in Distribution cost was mainly due to the implementation of Axle Weight Regulation and impact of inflation.
The increase in Super tax levy by Finance Act 2023 led to higher effective tax rate of 42% compared to 35% same period last year.
The highlight of the cvompany's performance is the record return on investments and dividend income aggregating to Rs10.3bn.
The company’s finance cost also expanded by 2.8% YoY and stood at Rs1.51bn as compared to Rs1.46bn in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs7.5bn against the Rs4.21bn paid in the corresponding period of last year, depicting a rise of 78.1% YoY.
| Unconsolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Sales | 58,407,254 | 36,405,816 | 60.43% |
| Cost of sales | (41,120,024) | (21,831,206) | 88.35% |
| Gross Profit/ (loss) | 17,287,230 | 14,574,610 | 18.61% |
| Selling And Distribution Expenses | (5,193,056) | (3,055,823) | 69.94% |
| Other Gains / (Losses) | – | (582,614) | -100.00% |
| Other Income | 10,275,874 | 3,544,619 | 189.90% |
| Other Operating Expenses | (2,838,098) | (1,073,360) | 164.41% |
| Finance Cost | (1,505,443) | (1,464,299) | 2.81% |
| Profit/ (loss) before taxation | 18,026,507 | 11,943,132 | 50.94% |
| Taxation | (7,504,607) | (4,213,000) | 78.13% |
| Net profit/ (loss) for the period | 10,521,900 | 7,730,132 | 36.12% |
| Basic earnings/ (loss) per share | 8.27 | 6.08 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-29T13:29:57+05:00
