Fauji Fertilizer’s profit rises amid Economic Slowdown

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Fauji Fertilizer’s profit rises amid Economic Slowdown

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.

 

Rs. In Million 1Q2020 1Q2019 Change
Net Sales 20,626 20,311 2%
Gross Profit 7,490 5,963 26%
Finance Cost 673 469 44%
Net Profit 4,262 3,696 15%

Adnan Syed Administrator
Adnan Syed is an Ex-Banker and Founder of TheMint.Pk. He is an investor, partner, and advisor to different Businesses. He has special interests in E-Commerce, Stock Market and Digital Assets.
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Adnan Syed Administrator
Adnan Syed is an Ex-Banker and Founder of TheMint.Pk. He is an investor, partner, and advisor to different Businesses. He has special interests in E-Commerce, Stock Market and Digital Assets.
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