By: Azee Securities Private Limited
Fauji Fertilizer Company Limited announced its first quarter results ended March 31, 2015 with profit after tax of Rs 6 billion interpreting into upside movement by 29.6% as against Rs 4.6 billion the same period last year owing to increased urea sales and gigantic growth in other income by 59% owing to dividend income from associated companies. Earnings per share stood at Rs 4.64/share as against Rs 3.58/share at previous year end. Result also escorted with the interim dividend of Rs 3.94/share.
Urea Offtak Welcoming demand any time, any where Fauji Fertilizer Company is currently maintaining three plants with the total production capacity of 2,048K metric tons per year. Due to this, the company successfully met the increased demand for the quarter of 615K tons that was 4% higher than the corresponding quarter. The operating efficiency enhanced to reach 122% during the quarter as against 118% the same period last year, reason being lower gas curtailment from Mari Field.
Sales revenue at its peak: During the period, higher urea demand took place due to which the company managed to sell its 625K tons ‘Sona’ Urea depicting an increase of 9% against the same period last year. This also lead to sales revenue of Rs 20.41 billion that is claimed to be highest so far by the company, as against Rs 17.6 billion revenue that was generated at the end of 1QCY14. Other income also grew up by 59.2% to reach Rs 2.45 billion during first quarter 2015 as compared to Rs 1.5 billion the same period previous year mainly due to higher dividend income from associated companies i.e. FFBL, AKBL & FCCL.