KARACHI: Fauji Fertilizer Bin Qasim (FFBL) posted a 104% rise in profit for the quarter ended September 30, 2018 which stood at Rs1.16 billion and was higher than expectations.
The company had registered a profit of Rs518 million in the same period last year.
“The year-on-year growth in earnings, which translated into EPS of Rs1.54 against last year’s Rs0.76, is due to improved gross profit margins and a substantial increase in revenues by around 48%,” Topline Securities’ research analyst Shankar Talreja told The Express Tribune.
The exceptional increase in revenue came on the back of 30% YoY increase in DAP fertiliser consumption to 211,000 tons and 7% higher urea sales at 156,000 tons.
Meanwhile, average prices of DAP and urea in the quarter were Rs3,362 per bag and Rs1,610 per bag respectively, up 29% and 21%. Finance cost of the company rose 7% to Rs1.3 billion due to higher interest rates and working capital requirements.