Fauji Fertilizer Company Limited is expected to unveil its 1HCY22’s financial result on 28th Jul’22, where we expect earnings to clock-in at PKR 9,147mn (EPS: PKR 7.19), down by 3% YoY. On a quarterly basis, the bottom-line is projected to reduce by 20% YoY, settling at PKR 2,908mn (EPS: PKR 2.29) in 2QCY22 amid super tax being charged during the quarter. The net sales are expected to climb up by 27% YoY in 2QCY22 given jump in urea and DAP offtake by 18% and 7% YoY, respectively tagged with surge in urea and DAP prices by 22% and 79% YoY, respectively.

Gross margins are expected at 38.6% in 2QCY22 versus 34.7% in 2QCY21 given higher urea prices. Furthermore, the other income is expected to ascend by 151% YoY in 2QCY22, arriving at PKR 3,749mn on the back of higher income from cash and cash balances tagged with dividend from Pakistan Maroc Phosphore S.A., Morocco (PMP).

Furthermore, financial charges are expected to arrive at PKR 1,765mn, up by 4.6x YoY on account hike in interest rate. Alongside this, the company is expected to announce a cash dividend of PKR 2.00/share in 2QCY22 (1HCY22: PKR 5.70/share).