Fauji Feritilizer Bin Qasim Ltd Profit Increased by 5146% in 9 Months of FY24

Fauji Fertilizer Bin Qasim Limited announced its 9MCY24 financial result today where the company posted a profit after tax (PAT) of Rs. 18.569 billion (EPS: PKR 14.38) compared to Rs. 354 million (EPS: Rs. 0.27) in SPLY, depicting massive jump of 52x YoY. On a quarterly basis, the profitability climbed 51 percent YoY, arriving at Rs. 8,009 million (EPS: Rs. 6.20) in 3QCY24. Net sales increased by 13 percent YoY to Rs. 154,465 million in 9MCY24. According to Arif Habib Limited (AHL), this was on account of i) a jump in urea offtake by 42 percent YoY, and ii) an increase in urea and DAP prices by 51 percent and 15 percent YoY, respectively. During 3QCY24, the topline declined by 18 percent YoY given significant growth in urea sales by 98 percent YoY (higher urea production due to better availability of gas) tagged with 32 percent and 9 percent YoY increase in urea and DAP price, respectively. Meanwhile, DAP sales plummeted by 37 percent YoY. Gross margins stood at 22.17 percent during 1HCY24 compared to 12.40 percent in SPLY owing to a decline in phosphoric acid price and higher DAP price. Similarly, the gross margins during 3QCY24 went up by 977 bps, settling at 24.55 percent higher urea sales and improved DAP margins. The other income climbed up by 95 percent YoY to Rs. 12,289 million during 1HCY24, owing to higher income from cash and cash balances tagged with dividend income from the associate company (AKBL) and joint venture (PMP). On a quarterly basis, the other income was augmented by 27 percent YoY amid higher income from short-term investments. Finance costs plummeted by 62 percent YoY to Rs. 2,122 million during 9MCY24. Whereas, finance cost dwindled by 67 percent YoY to Rs. 767 million in 3QCY24 owed reduction in borrowings and interest rates. The company booked effective taxation at 37 percent in 3QCY24 vis-à-vis 26 percent in 3QCY23.