Fauji Fertilizer Bin Qasim Limited (FFBL) is scheduled to announce its financial result for 9MCY22 on 25th Oct’22, where we expect the company to post a profit after tax of PKR 4,634mn (EPS: PKR 3.59), down by 25% YoY. The fall in bottom-line comes on the back of i) super tax imposed on the profit before tax of CY21 and 9MCY22, and ii) decline in urea and DAP offtake by 4% and 26% YoY, respectively. On a quarterly basis, the profitability is projected at PKR 1,224mn (EPS: PKR 0.95) vis-à-vis PKR 2,275mn (EPS: PKR 1.77) in SPLY, depicting a decrease of 46% YoY on account of plunge in urea and DAP offtake by 35% and 76% YoY, respectively due to flash floods across the country. Meanwhile, urea and DAP prices climbed up by 36% and 106% YoY, respectively. Gross margins are forecasted to settle at 18.7% during 3QCY22 compared to 22.2% in 3QCY21 owed to lower offtake. Furthermore, financial charges are expected to climb up by 90% YoY amid higher interest rates. Other income is forecasted to reduce by 80% YoY given lower dividend income from subsidiaries.
Courtesy – AHL Research