October 26, 2018 (MLN): Fauji Fertilizer Company Limited (FFC) has witnessed a remarkable rise in its profits for the nine month period ended September 30, 2018, despite considerably declining non-core income.
The company’s financial earnings report for the period shows that as compared to the corresponding period of last year, the net sales have increased by 22% while gross profits leapt up by over 50%.
While administrative and non-core expenses rose, a fortunate cut worth Rs.889 million in finance costs, not only annulled their weighing impact but also ensured a drop of 2% in overall expenses.
However, non-core income declined significantly during the three quarters, as it came down by Rs.1.8 billion to Rs.4.2 billion.
Nevertheless, FFC emerged with substantial improvement in net profits which grew by Rs.3.2 billion as it was recorded at Rs.10 billion, marking an increase of 47%.
The company’s earnings per share stand in at Rs.7.88 per share.
In addition to this, FFC’s board of directors have recommended an interim cash dividend at Rs.1.8 per share (18.00%), in addition to the previously paid interim dividends at Rs.3.15 per share (31.5%)
|
Consolidated Profit and Loss Account for the nine months ended September 30,2018 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Sep-18 |
Sep-17 |
% Change |
|
Sales – net |
73,726,557 |
60,351,590 |
22.2% |
|
Cost of sales |
54,294,933 |
47,499,168 |
14.3% |
|
Gross Profit |
19,431,624 |
12,852,422 |
51.2% |
|
Administrative expenses and distribution cost |
7,186,010 |
6,901,041 |
4.1% |
|
Finance cost |
1,656,711 |
2,546,123 |
-34.9% |
|
Other expenses |
1,408,245 |
1,038,336 |
35.6% |
|
|
10,250,966 |
10,485,500 |
-2.2% |
|
Other income |
4,150,005 |
5,951,030 |
-30.3% |
|
Share of profit of associates and joint venture |
1,915,117 |
2,067,235 |
-7.4% |
|
Profit before taxation |
15,245,780 |
10,385,187 |
46.8% |
|
Provision of taxation |
5,217,332 |
3,577,236 |
45.8% |
|
Profit after taxation |
10,028,448 |
6,807,951 |
47.3% |
|
Earnings per share – basic and diluted (Rupees) |
7.88 |
5.32 |
48.1% |
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