Fauji Fertilizer Bin Qasim Limited (FFBL) is scheduled to announce its financial result for 1HCY22 on 25th Jul’22, where we expect the company to post a profit after tax of PKR 3,049mn (EPS: PKR 2.36), down by 21% YoY. The drop in earnings comes on the back of higher taxation during the 2QFY22 tagged with fall in dividend income.
On a quarterly basis, the profitability is projected at PKR 1,422mn (EPS: PKR 1.10) compared to PKR 2,609mn (EPS: PKR 2.03) in SPLY, depicting a decline of 46% YoY on account of super tax imposed by the government.
Meanwhile, DAP offtake witnessed a jump of 59% YoY, along with surge in urea and DAP prices by 22% and 79% YoY, respectively. Gross margins are forecast to settle at 19.0% during 2QCY22 vis-à-vis 20.7% in 2QCY21 owed to higher phosphoric acid prices. Furthermore, financial charges are expected to climb up by 70% YoY amid higher interest rates and short term borrowings. Other income is set to plunge by 75% YoY given lower dividend income from subsidiaries.