Fauji Fertilizer Bin Qasim. PHOTO: http://www.ffbl.com/
KARACHI: Fauji Fertilizer Bin Qasim - part of the Fauji group - has announced a profit after tax of Rs758 million in the first half (Jan-Jun) of calendar year 2015, down 16% year-on-year compared to Rs907 million in the same period of previous year.
Earnings per share (EPS) of the company reduced to Rs0.81 from an EPS of Rs0.97 in the comparative period.
Arif Habib Limited Research on Wednesday said the major deviation from expectations came through tax treatment (positive tax variance) as well as significant variation in the other income of the company.
The company also announced an interim cash dividend of Rs0.75 per share.
Sales jumped by 14% year-on-year to Rs18 billion during the period under review mainly on account of 13% higher Di-ammonium Phosphate (DAP) off-take in the first half of 2015.
The gross margins clocked in at 16% for the period, a decline of 400 percentage points compared to the same period last year. This was attributable to lower primary margins (phos-acid prices dropped 16% year-on-year) coupled with higher fixed cost/unit and higher repair and maintenance cost during the period.
Other income surged 113% year on year amid dividend income from associates, including Askari Bank Limited.
Financial charges surged 112% year on year to Rs840 million, due to a higher working capital requirement.
The company booked an effective tax rate of only 14% during the period under review.
Published in The Express Tribune, July 30th, 2015.
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