Fauji Fertilizer Company Limited (FFC) declared its First Quarter Financial result where the FFC posted a profit of Rs. 4.26billion (Earnings per share: Rs. 3.4), as opposed to Rs. 3.7billion (Earnings Per Share: Rs. 2.9) in first quarter of last year, marking an increase of 15% .
FFC also announced an interim cash dividend of Rs. 2.5/share. Increase in Profit despite economic slowdown was due to rise in company’s gross margin to 36% as compared to 29% in last year on the back of higher urea offtake and exemption of GIDC.
FFC witnessed sharp increase of 44% in its Financing cost as it increases debt during the period.
On a sequential basis, FFC’s net profit has reduced by 8% from last quarter due to 37% quarterly decline in its revenue on account of i) lower offtakes and ii) decrease in urea price.
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