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Fauji Fertiliser earns Rs5.6bn

January 28, 2014

Fauji Fertiliser Bin Qasim Limited (FFBL) announced profit after tax (PAT) at Rs5.6 billion , translating into earnings per share (EPS) at Rs6.01 for the year ended Dec 31, 2013 . The earnings represented 29 per cent growth over the earlier year’s PAT at Rs4.3bn (EPS: Rs4.64 ). The board also declared final cash dividend at Rs2.25 , making the full year cash payout at Rs5 per share. Several analysts said that while the earnings were in line with market forecasts, the dividend fell slightly short of expectations. Analyst Raza Hamdani at AKD Securities stated that the highlights of the results were increase in revenue by 14pc YoY in CY13 to Rs54.5bn due to an expected 24pc YoY increase in DAP off take (DAP capacity utilisation was thought to be at a record 112pc) and gross margin expansion due to higher DAP primary margins during the year. The `other income’ registered sharp decline of 52pc YoY from liquidation of short-term investments ahead of the Askari Bank (AKBL) acquisition. For 4QCY13, company clocked in net profit at Rs2.4bn (EPS: Rs2.48 ) up by 57pc QoQ and 5pc YoY with a revenue growth of 52pc QoQ and 11pc YoY. Going forward, the analyst said that though margin contraction was foreseen in 1QCY14 as a result of the recent hike in Gas Infrastructure Development Cess (GIDC) and scheduled gas outage expected till end of next month, a recent uptick in international DAP price may lead to a recovery in local price. In the near-term, announcement of phosphate acid contract price for 1QCY14 was the key checkpoint. Analyst Salman Badami added that the higher DAP off take by 26pc to 770,000 tonnes in 2013 was the key reason for increasing revenue. However, urea off take declined by 4pc compared to the previous year. The analyst believed that favourable agricultural environment was the prime factor leading to volumetric growth.


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Source: Daily Messenger (Pakistan)


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