Fauji Fertilizer Company Limited is expected to unveil its CY23 financial result on 26th Jan’24, where we expect earnings to clock in at PKR 32,439mn (EPS: PKR 25.50), up by 62% YoY on account of a jump in urea and DAP offtake by 3% and 51% YoY, respectively. On a quarterly basis, the net profit is expected to climb up by 96% YoY, settling at PKR 10,225mn (EPS: PKR 8.04) in 4QCY23. The growth in profitability comes amid an increase in DAP sales by 109% YoY coupled with 64% YoY higher urea prices.

Meanwhile, urea sales declined by 5% YoY in 4QCY23. Gross margins are expected at 39.7% in 4QCY23 versus 32.2% in 4QCY22 owing to a jump in urea prices. Furthermore, the other income is expected to increase by 4% YoY in 4QCY23, arriving at PKR 4,304mn amid higher income from cash and cash balances. Furthermore, financial charges are expected to arrive at PKR 1,286mn, down by 22% YoY on account of a fall in short term borrowings.

Alongside this, the company is expected to announce a final cash dividend of PKR 7.00/share in 4QCY23 (CY23: PKR 18.39/share).

Courtesy – AHL Research