Karachi October 25 2022: Fauji Fertilizer Bin Qasim Limited (FFBL) reported operating profit of PKR 2.5 Billion as compared to PKR 6.6 Billion of same period last year (SPLY), primarily due to lower DAP sales, according to company filing to the Pakistan Stock Exchange.
The loss after tax was PKR 1.7 Billion for the 3rd quarter (PKR 2.3 Billion profit after tax SPLY) due to lower operating profit and exchange loss of PKR 4.2 Billion.
Share price of the company drops 47 paisa or 2.44 percent in today’s trading to close the day at PKR 18.83 on Pakistan Stock Exchange.
“Calamitous floods with heavily saddening loss of life, crippling inflation, ongoing economic crisis, extreme volatility of Pak rupee against US Dollar have resulted in slowing down of business cycle. Floods heavily affected agriculture with large portions of the Country still under water. This significantly impacted our overall performance, further exacerbated by declining trend in the international DAP prices and volatility in the USD PKR parity” says Company’s Chairman Mr. Waqar Ahmed Malik.
During the nine months period ended 30 September 2022, the Company achieved highest ever sales revenue of PKR 93.5 Billion, highest ever gross profit of PKR 17.9 Billion and highest ever operating profit of PKR 12.9 Billion, representing 37%, 24% and 33% increase respectively as compared with SPLY. The Company also achieved highest ever DAP production of 673KT for the period. The Company’s DAP sales dropped by 26% in comparison to 41% decline in industry’s DAP sales during the period. The nine months profit after tax was PKR. 1.7 Billion (PKR 6.2 Billion SPLY) after recording exchange loss of PKR 7.2 Billion and super tax of PKR 2.7 Billion.
On consolidated basis, during the nine months period, despite exchange loss and finance cost, as mentioned above, profit before tax achieved 9% growth from PKR 8.8 Billion to PKR 9.6 Billion. However, super tax charge of PKR 2.7 billion reduced the profit after tax by 40% to PKR 3.6 Billion from PKR 6 Billion in SPLY.
