Fauji Fertilizer Bin Qasim Limited (FFBL) is scheduled to announce its financial result for 1HCY24 on 19th Jul’23, where we expect the company to post a profit after tax of PKR 8,413mn (EPS: PKR 6.52) vis-à-vis loss of PKR 4,950mn (LPS: PKR 3.83) in SPLY due to massive exchange loss during 1QCY23. We expect the company’s quarterly net profit to arrive at PKR 4,107mn (EPS: PKR 3.18) in 2QCY24, depicting a massive jump of 9x YoY, which is primarily due to the absence of incremental super tax imposed during the quarter.

The topline of the company registered a growth of 36% YoY on account of i) 3% and 37% YoY growth in DAP and urea sales and ii) higher urea and DAP prices. Gross margins are expected to be 19.8% during 2QCY24 vis-à-vis 12.9% in 2QCY23 owed to a decline in phosphoric acid prices. Furthermore, financial charges are expected to reduce by 64% YoY amid lower short-term borrowings.

Other income is estimated to ascend by 42% YoY on account of higher income from cash and cash balances.

Courtesy – AHL Research