Fauji Fertiliser posts Rs 4.9 billion earnings
April 30, 2013
Fauji Fertiliser Company (FFC) on Monday has announced 1Q2013 result, where the company posted earnings of Rs 4.9 billion (EPS of Rs 3.86), up 27 percent YoY. Along with the result, the company also announced a first interim cash dividend of Rs 3.5 per share, which translates into 91 percent payout and should, in our view allay market fears of a sharp DPS cut due to ongoing AKBL transaction.
The result was in line with our expectation, analysts said. In 1Q2013, they said the YoY growth in earnings is due to lower base of 2012, where off take was held back in 1Q2012 due to expectation of urea price reduction amid availability of imported urea and weak farm economics. It is for this reason, in 1Q2013 the net sales of the company have increased by 43 percent YoY, primarily attributable to higher off take of 565k tons (up 72 percent YoY), they said. Source Business Recorder
Published: Zarai Media Team