LAHORE: The Board of Directors (BOD) of Fauji Fertiliser Company Limited met on Wednesday to review the company’s performance and announce its financial results for the quarter ended September 30, 2020.
As per details, the fertiliser manufacturers booked an unconsolidated profit of Rs4.628 billion (EPS: Rs3.64) for 3Q2020 as compared to a profit of Rs3.563 billion (EPS: Rs2.80) during the same period of last year (3Q2019), showing an increase of 30pc YoY.
This took the 9M2020 earnings to Rs13.764 billion (EPS: Rs10.82) as compared to Rs12.468 billion (EPS: Rs9.80) in 9M2019, depicting a rise of 10pc YoY.
During the meeting, the BOD also announced the interim cash dividend of Rs2.55 per share i.e.25.50pc. This is in addition to the interim dividend paid already at Rs5.25 per share i.e.52.50pc.
“The company’s interim cash dividend for quarter is slightly lower than our expectation of Rs2.75 per share. It takes total cash dividend to Rs7.80 per share in 9M2020,” Topline Securities Limited Research Analyst Sunny Kumar.
Kumar added that the company’s revenues declined by 7pc YoY to Rs24,636 million in 3Q2020 amidst a fall in urea offtake by 3pc YoY and average urea prices by 14pc YoY.
However, DAP sales increased by 25pc YoY to 93,000 tonnes in 3Q2020, while average prices declined by 3pc YoY.
He maintained that the gross margin increased by 7.8ppts YoY to 33.6pc in 3Q2020 from 25.7pc in 3Q2019.
“Finance costs decreased by 51pc YoY to Rs271million in 3Q2020 amidst lower borrowing and interest rates,” Kumar said.
Similarly, the company’s “other income” declined by 39pc YoY to Rs951million in 3Q2020 mainly due to lower interest rates. Effective tax rate clocked in at 29.9pc in 3Q2020 as compared to 31.5pc in 3Q2019.