Fauji Fertilizer Company Limited is expected to unveil its 1HCY24’s financial result on 19th Jul’24, where we expect earnings to clock in at PKR 21,372mn (EPS: PKR 16.80), showcasing a massive growth of 63% YoY. On a quarterly basis, the bottom line is projected to swell up by 103% YoY, settling at PKR 10,850mn (EPS: PKR 8.53) in 2QCY24 owed to 62% and 19% YoY higher urea and DAP prices, respectively tagged with a 4% YoY uptick in urea offtake.

Meanwhile, DAP sales declined 45% YoY. Gross margins are expected to decline by 667bps to 40.2% in 2QCY24 amid higher gas prices. Furthermore, other income is forecasted to augment by 80% YoY in 2QCY24 due to higher income from cash and cash balances. Financial charges are anticipated to grow by 5% YoY due to slightly higher interest rates.

Alongside the result, we expect a cash dividend of PKR 7.00/share (1HCY24: PKR 12.50/share).Courtesy – AHL Research