Fauji Fertilizer Bin Qasim Limited (FFBL) announced the financial result for CY18 posting a profit after tax (PAT) of Rs. 1,437mn (earning per share Rs 1.54), as compared to a PAT of Rs 1,004mn (earning per share Rs. 1.08) during same period last year.
On a quarterly basis, the company posted a profit after tax (PAT) of Rs 1,640mn (earning per share Rs. 1.76) during 4QCY18, in contrast to a PAT of Rs, 1,282mn (earning pr share Rs. 1.37) recorded during 4QCY17.
Analysts at Arif Habib Limited said that the FFBL’s topline witnessed a 6% YoY decline during 4QCY18 attributable to a 25% and 34% YoY decline in urea and DAP offtake, respectively.
Moreover, on a CY18 basis, net sales jumped up 17% YoY to Rs. 62bn as urea and DAP prices surged by 15% YoY and 23% YoY, respectively.
Margins declined slightly on a YoY basis to 14% in 4QCY18 owing to lower offtake, while recovering to 13% during CY18 (11% in CY17) mainly due to absence of urea subsidy tagged with higher urea and DAP prices.
Other income dropped by 27% YoY to Rs. 3.1bn during CY18 on account of absence of subsidy while surged by 94% YoY during 4QCY18 amid recognition of dividend income from subsidiary (FFBL power company).