KARACHI: Fauji Fertilizer Company (FFC) posted a net profit of Rs2.7 billion in the first quarter of calendar year 2016, down 54% compared to Rs5.9 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Along with the result, the company declared an interim cash dividend of Rs1.85.
The result is in line with expectations, Taurus Securities reported on Tuesday.
During the first quarter of financial year 2016, sales revenue of the company declined by 43% year on year owing to dismal urea off-take.
Moreover, massive drop has been witnessed in gross margins which clocked in at 26%, down 14 percentage points.
“We attribute distortion in margins to discounts on urea bag prices triggered by low demand and gas price hike in September 2015. Moreover, finance cost surged up by1.9x to Rs561 million due to higher borrowings,” the report added.
Published in The Express Tribune, April 27th, 2016.
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