Experts expect FFBL’s unconsolidated EPS to increase by 140% YoY to Rs6.13 in 3Q2021 compared to EPS of Rs2.56 in 3Q2020. The turnaround in profitability is attributable to (1) one-off gain (EPS impact of Rs2.3/share) from the divestment of Fauji Wind Energy I-II, (2) improvement in DAP primary margins amidst increase in local DAP prices, and (3) 25% YoY increase in Urea sales. Excluding the one-off gain, earnings are likely to clock in at Rs3.8/share.
Earnings are also expected to increase by 204% QoQ due (1) 149% QoQ Increase in DAP sales, (2) 9% QoQ increase in Urea sales and (3) 11% QoQ increase in DAP local prices.
Courtesy – AHCML Research