Fauji Fertilizer Bin Qasim Limited (FFBL) announced the financial result for 3QCY21 today, where the company posted a profit after tax (PAT) of PKR 2,275mn (EPS: PKR 1.77) against PKR 3,306mn (EPS: PKR 2.56) in 3QCY20, down by 31% YoY.
Meanwhile, in 9MCY21 net profit clocked in at PKR 6,150mn (EPS: PKR 4.78) in contrast to a loss of PKR 901mn (LPS: PKR 0.70) in SPLY.
· Net Sales jumped up by 53% YoY to PKR 38,449mn during 3QCY21, on the back of ascending in urea and DAP prices by 7% and 72% YoY, respectively tagged with 20% YoY higher urea offtake. However, DAP offtake declined by 12% YoY in 3QCY21. On a cumulative basis, topline arrives at PKR 68,367mn, up by 37% YoY amid urea and DAP prices climbing up by 2% and 56% YoY.
· Gross margins clocked-in at 22% in 3QCY21 (up by 654bps YoY), which is attributable to better DAP margins on YoY basis.
· The company recorded other expense of PKR 4,175mn in 3QCY21. With this, the total other expenses during 9MCY21 surged by 3x YoY, arriving at PKR 4,604mn.
· Other income jumped up by 64% YoY to PKR 4,167mn in 3QCY21 on account of gain on sale of Foundation Wind Energy I & II. With this the other income in 9MCY21 reached PKR 8,216mn, up by 94% YoY, owed to higher dividend income from FPCL, AKBL and PMP.
· The company incurred impairment charges on equity investment (Fauji Meat Limited) of PKR 2,103mn during 3QCY21.
· Financial charges declined by 31% YoY, settling at PKR 560mn during 3QCY21 owed to reduction in short term borrowings. Similarly, during 9MCY21 financial charges arrived at PKR 1,820mn, down by 49% YoY.
· The company booked tax effective taxation at 38% during 3QCY21 vis-à-vis 16% in 3QCY20.
Courtesy- AHL Research