Corporate results: Fauji profits double

Immense growth in sales and other income drove earnings of Fauji fertiliser higher.

KARACHI:

Fauji Fertilizer Bin Qasim profits more than doubled in the first half of 2011, beating all market expectations.

The company’s net profit jumped to Rs3.5 billion during January to June 2011 against Rs1.7 billion in the same period last year, according to a notice sent to the Karachi Stock Exchange on Wednesday.

Immense growth in sales and other income drove earnings higher, said Summit Capital analyst Sarfraz Abbasi.

Moreover, the board of directors in a meeting held in Vienna, Austria on Wednesday also declared a cash dividend of Rs2.25 per share, taking the total payout for the year to Rs3.5 for every Rs10 share.

The bottom-line was better than analyst expectation as they expected the net profit to be around Rs3.3 billion.

Sales revenue jumped 51 per cent to Rs18.02 billion in the period under review on the back of sharp rise in prices of fertilisers. The average prices of the both fertiliser products urea and di-ammonia phosphate (DAP) witnessed an increase of 38 per cent and 29 per cent on a yearly basis, respectively.

However, the company’s urea sales fell by 15 per cent to 221,000 tons although sales of its premier product DAP increased by 30 per cent to 207,000 tons.

Moreover, gross margin rose by 646 basis points to stand at 38.5 per cent.

The company’s stock was the highest traded stock at the Karachi Stock Exchange on Wednesday, declining Rs0.28 to close at Rs 46.8.

Other income showed surged 50 per cent to Rs4.8 billion on the back of higher investment income and return on deposits, added Abbasi. It is pertinent to mention that the company paid tax at 39 per cent during the second quarter of 2011 and 33 per cent in the previous quarter.

Moreover, the board of directors in a meeting held in Vienna, Austria on Wednesday also declared a cash dividend of Rs2.25 per share, taking the total payout for the year to Rs3.5 for every Rs10 share.

MIRPURKHAS SUGAR MILLS 334.5%

is the increase in net profit to Rs217.7 million  during October 2010 to June 2011 from Rs50.1 million in the same period last year.

MEHRAN SUGAR MILLS 50.7%

is the increase in net profit to Rs288.4 million  during October 2010 to June 2011 from Rs191.4 million in the same period last year.

HABIB SUGAR MILLS 28.8%

is the increase in net profit to Rs562.2million  during October 2010 to June 2011 from Rs436.4 million in the same period last year.

JDW SUGAR MILLS 9.7%

is the increase in net profit to Rs2,105.9 million  during October 2010 to June 2011 from Rs1,918.9 million in the same period last year.





Published in The Express Tribune, July 28^th, 2011.