Fauji Fertilizer Company Limited (FFC) is expected to announce its CY21’s financial result on Jan 31st, 2022, where we expect earnings to arrive at PKR 21,494mn (EPS: PKR 16.89) against PKR 20,819mn (EPS: PKR 16.36) in CY20, up by 3% YoY. On quarterly basis, the bottom-line is projected to decline by 21% YoY, clocking-in at PKR 5,606mn (EPS: PKR 4.41) amid absence of re-measurement gain on GIDC. The net sales are expected to jump up by 20% YoY amid surge in urea and DAP prices by 16% and 95% YoY, respectively.

Meanwhile, urea and DAP offtake dropped by 3% and 9% YoY, respectively. Gross margins are expected at 32.7% in 4QCY21 compared to 28.8% in 4QCY20 given higher urea prices. Furthermore, the other income is expected to ascend by 12% YoY in 4QCY21, arriving at PKR 1,647mn on the back of higher income from cash and cash balances.

Furthermore, financial charges are expected to arrive at PKR 1,417mn, up by 3% YoY on account of higher short term borrowings. Alongside this, the company is expected to announce a final cash dividend of PKR 4.00/share in 4QCY21 (CY21: PKR 13.85/share).

Courtesy – AHL Research