Corporate results: Fauji Fertilizer’s earnings down 49%

Revenues declined 5% to Rs12.91 billion.

KARACHI: Fauji Fertilizer Bin Qasim announced a net profit of Rs1.77 billion for nine months that ended on September 30, down by a massive 49% after the company earned Rs3.45 billion during the same period previous year.

Earnings per share (EPS) remained Rs1.9 compared to an EPS of Rs3.70 in the previous year. Along with the result, the company announced an interim cash dividend of Rs0.75 per share, lower than estimates of Rs1.00 per share, reported Global Research.



The company posted revenues of Rs28.7 billion during nine months of calendar year 2014, declining by 15% year on year compared with revenues of Rs33.78 billion registered during same period last year.

This increase can mainly be attributed to falling DAP and urea off-take by 15% and 9% year on year, which was due to lower production on account of higher gas curtailment during current calendar year.

On a quarter-on-quarter basis, revenues declined by 5% year on year to Rs12.91 billion.

The company’s finance cost remained on the lower side and plunged by 17% year on year to Rs1.03 billion during nine months of calendar year 2014.

This decline in finance cost was due to net foreign exchange gain on its dollar denominated payables because of rupee strengthening against the dollar by 3% during the period. However, on a quarter-on-quarter basis, the company’s financial charges surged by 79% quarter on quarter to Rs634 million because of Rs10 billion additional borrowing by the company.

Published in The Express Tribune, October 24^th, 2014.

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