FFC’s profit down 10% during Jul-Sep

Lower earnings come on back of higher finance cost, lower revenue

KARACHI: Fauji Fertilizers Company Limited (FFC) reported a net consolidated profit of Rs3.74 billion for the quarter ended September 30, down 10% compared with Rs4.14 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) declined to Rs2.94 compared with an EPS of Rs3.26 in the period under review.

According to AKD Securities, the result was below expectations.

The KSE-100 Index closed at 40,526, down 237 points or 0.58% on Wednesday. FFC’s share price closed at Rs105.44, down 2.42% from Rs102.94.

The result announcement also accompanied a third interim cash dividend of Rs1.75 per share, taking cumulative payout during the first nine months of calendar year 2016 (9MCY16) to Rs5.15 per share.



In 9MCY16, the company posted a net profit of Rs7.3 billion, down 43% compared with Rs12.9 billion in the same period of last year.

The downtrend in earnings is on the back of 15% year-on-year lower revenue amid sluggish urea off-take and 85% year-on-year higher finance cost on account of increased borrowing to finance working capital requirement, according to AKD Securities.

Published in The Express Tribune, October 27^th, 2016.

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