Fauji Fertilizer Company (FFC) Limited, Pakistan’s leading urea manufacturer, reported a profit after tax of Rs. 6.24 billion for the quarter ending March 31, calendar year 2022.
According to the company’s financial statistics, profit after tax increased by 7% year on year (YoY) to Rs. 5.815 billion, up from Rs. 5.815 billion the previous year. FFC also issued an interim cash dividend of Rs. 3.70 per share for the quarter, which was higher than market estimates.
The company’s net sales climbed by 22% YoY to Rs. 26.315 billion in 1QCY22 from Rs. 21.539 billion the previous year, owing to higher urea supply and a 13 percent and 96 percent increase in urea and DAP prices, respectively. Net sales dropped by 25% on a quarter-over-quarter (QoQ) basis.
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During this period, Fauji Fertilizer gross margins decreased by 3.51 percent YoY to 35.6 percent. On the other hand, thanks to increased urea pricing and margins, margins improved by 2.75 percent on a quarter-over-quarter basis.
From Rs. 8.43 billion in the same time previous year, gross earnings climbed by 11% to Rs. 9.36 billion.
Due to increasing income from cash and cash equivalents, the company’s other income increased by 27% to Rs. 3.46 billion.
Due to increasing interest rates and an increase in short-term borrowings, the company’s finance costs climbed by 155 percent YoY to Rs. 1.07 billion during the quarter.
During the quarter, the company’s earnings per share were Rs. 4.90, compared to Rs. 4.57 in the same period prior year.