Hifsa Raja

Fauji Fertilizer Company Limited’s net turnover was Rs79 billion in the nine months (Jan-Sept) of CY22, increasing by 8% compared with Rs73 billion in the corresponding period of the previous year. The gross profit showed a year-on-year increase of 11% to Rs30 billion in 9MCY22 from Rs27 billion in 9MCY21. Similarly, the profit before taxation registered an increase of 20% during the nine-month period of CY22 to reach Rs26 billion from Rs21 billion in the corresponding period of CY21. The profit after tax was Rs14 billion in the nine months of CY22 compared with Rs15 million over the corresponding period of CY21, reports WealthPK.

Financial Performance

During the CY20-21, the company’s revenue was Rs108 billion over Rs97 billion in 2019-20, registering an increase of 11%. The gross profit was Rs38 billion in 2020-21 over Rs31 billion in 2019-20. The profit before taxation was Rs30 billion in 2020-21 over Rs29 billion in 2019-20, while the profit after taxation for FY2 was Rs21 billion from Rs20 billion in the previous year, reports WealthPK.

In 2018, the earnings per share was Rs11.35, which increased to Rs13.45 in 2019, Rs16.36 in 2020 and Rs17.21 in 2021.

Shareholdings:

As of June 30, 2021, the associated companies, undertakings and related parties held 44.35% shares of the company, public sector companies and corporations 11.57%, banks, DFI, NFC 7.10%, general public (local) 23.99%, others 4.32%, and foreign companies 4.68%.

Profit or Loss:

The gross profit ratio, net profit ratio, and earnings ratios for the last six years are used to illustrate the company’s profitability and earnings. At first, the profitability was low but it increased in 2020 and continued to grow in a positive direction. Because of growth in earnings and profit, the company is a strong alternative for investors.

Fauji Fertilizer Company Limited is a public company incorporated in Pakistan under the Companies Act, of 1913, (now the Companies Act, 2017). The principal activity of the company is manufacture, purchase, and marketing of fertilizers and chemicals, including investment in other fertilizers, chemicals, cement, energy generation, food processing, and banking operations.

Credit : Independent News Pakistan-WealthPk