FFBL’s losses widen six-fold to Rs2.4 billion
Decline comes due to 74% drop in di-ammonium phosphate and urea sales
PHOTO: FILE
KARACHI:
Fauji Fertiliser Bin Qasim Limited’s losses widened nearly six-fold to Rs2.4 billion in the quarter ended March 31, 2019, according to a notice sent to the Pakistan Stock Exchange (PSX).
The company reported a loss of Rs413 million during the same period of 2018.
The company’s loss per share (LPS) amounted to Rs2.39 in the quarter under review against Rs0.26 in the same quarter last year.
The fertiliser company’s net sales plunged to Rs6.9 billion during the quarter, more than half compared to Rs14 billion last year. “Net sales of the company dropped 51% on a year-on-year basis mainly due to 74% drop in di-ammonium phosphate (DAP) and urea sales,” BMA Capital analyst Syed Khurram Mohiuddin told The Express Tribune.
“The company also witnessed 25% drop in net sales of its dairy subsidiary Fauji Foods Limited.”
On the other hand, Fauji Fertiliser Bin Qasim’s cost of sales also halved to Rs6 billion against Rs12 billion in the same quarter of 2018.
The gross profit of the company nosedived to Rs823 million during Jan-Mar 2019 compared to Rs2 billion in the same period previous year.
Fauji Fertiliser’s profit rises 43% to Rs16.4b
“Its gross margins fell 20% in the first quarter of 2019 mainly due to lower DAP primary margins, which were down significantly by 24% on a year-on-year basis,” added the analyst. “Higher repair and maintenance charges also sparked decline in the gross margins of the company.”
The finance cost of the fertiliser company doubled to Rs2 billion during the quarter against Rs1 billion in the previous year. “Finance costs went up by 79% year-on-year to Rs1.9 billion amid 23% year-on-year increase in interest bearing debt along with high interest rates,” said the analyst.
Published in The Express Tribune, April 25th, 2019.
Fauji Fertiliser Bin Qasim Limited’s losses widened nearly six-fold to Rs2.4 billion in the quarter ended March 31, 2019, according to a notice sent to the Pakistan Stock Exchange (PSX).
The company reported a loss of Rs413 million during the same period of 2018.
The company’s loss per share (LPS) amounted to Rs2.39 in the quarter under review against Rs0.26 in the same quarter last year.
The fertiliser company’s net sales plunged to Rs6.9 billion during the quarter, more than half compared to Rs14 billion last year. “Net sales of the company dropped 51% on a year-on-year basis mainly due to 74% drop in di-ammonium phosphate (DAP) and urea sales,” BMA Capital analyst Syed Khurram Mohiuddin told The Express Tribune.
“The company also witnessed 25% drop in net sales of its dairy subsidiary Fauji Foods Limited.”
On the other hand, Fauji Fertiliser Bin Qasim’s cost of sales also halved to Rs6 billion against Rs12 billion in the same quarter of 2018.
The gross profit of the company nosedived to Rs823 million during Jan-Mar 2019 compared to Rs2 billion in the same period previous year.
Fauji Fertiliser’s profit rises 43% to Rs16.4b
“Its gross margins fell 20% in the first quarter of 2019 mainly due to lower DAP primary margins, which were down significantly by 24% on a year-on-year basis,” added the analyst. “Higher repair and maintenance charges also sparked decline in the gross margins of the company.”
The finance cost of the fertiliser company doubled to Rs2 billion during the quarter against Rs1 billion in the previous year. “Finance costs went up by 79% year-on-year to Rs1.9 billion amid 23% year-on-year increase in interest bearing debt along with high interest rates,” said the analyst.
Published in The Express Tribune, April 25th, 2019.