By: Azee Securities Pakistan Private Limited
The board meeting for the 3QCY15 financial results of Fauji Fertilizer Company Limited (FFC) is scheduled to be held on October 28, 2015, while Lucky Cement Limited (LUCK) is planned to hold its board meeting on October 29, 2015 for 1QFY16.
FFC: Earnings likely to down 4% (EPS: Rs 9.74): FFC is expected to post profit after taxation of Rs 12.39 billion (EPS: Rs 9.74) down by 4% YoY for 9MCY15 versus Rs 12.96 billion (EPS: Rs 10.19) identical period last year due to higher repair and maintenance cost and surge in effective taxation owing to imposition of super tax. However, in 3QCY15, company earning to hike by 75% YoY to Rs 4.13 billion (EPS: Rs 3.25) in 3QCY15 compared to Rs 2.35 billion (EPS: Rs 1.85) in 2QCY15 owing to lower repair and maintenance cost and higher other income. Net sales likely to move up by 6% YoY to Rs 58.19 billion compared to Rs 55.03 billion in 9MCY14 owing to higher volumetric sales. Additionally, company would announce interim cash dividend of Rs 3.25/share thus cumulative payout of the company for 9MCY14 would be Rs 8.94/share.
LUCK: Earnings anticipated to surge by 19% (EPS: Rs 9.83): Lucky cement is expected to post net earnings of Rs 3.17 billion (EPS: Rs 9.83) for 1QFY16 against Rs 2.66 billion (EPS: Rs 8.25) in the same period last year, an increase of 19% YOY likely due to better volumetric sales, lower coal prices and surge in other income. Top line to go up by 2% at Rs 10.65 billion in 1QFY16 against Rs 10.47 billion during 1QFY15 on account of surge in total dispatches by 1% to 1.63 million tons in 1QFY15 against 1.61 million tons in 1QFY15. Gross profit likely to hike by 12% to Rs 4.93 billion versus Rs 4.41 billion in 1QFY15 likely driven by higher retention prices, which surge by 1.4% to Rs 6,714/ton in 1QFY16 versus Rs 6,620/ton in 1QFY15.