Qudsia Bano

Fauji Fertilizer Bin Qasim Ltd’s sales revenue increased 37% to Rs 93.5 billion in the nine months (Jan-Sep) of CY22 compared with Rs68.3 billion in the corresponding period of last year. The gross profit registered a growth of 24% during the nine months of CY22, standing at Rs17.9 billion as against Rs14.5 billion in the corresponding period of the previous year. The company posted a net income of Rs1.7 billion during the nine months of CY22 compared to a profit of Rs6.1 million in the corresponding period of last year, showing a negative growth of 72%, reports WealthPK.

The primary reasons for the fall in net profit were the PKR7.2 billion foreign exchange loss, PKR2.8 billion finance expense, and PKR2.7 billion super tax. The company experienced a loss after taxes during the third quarter as a result of a considerable sales reduction (41% when compared to SPLY), and severe depreciation of the Pakistani rupee, which led to PKR4.2 billion loss in currency.

Performance in 2021

During CY2021, the company maintained a strong sales trend, generating a revenue of Rs110.4 billion as against Rs83 billion in CY20, posting an increase of 33% year-on-year.   The gross profit for CY21 stood at Rs22.2 billion, 76% up from a profit of Rs12.6 billion in CY20. The profit-after-taxation for CY21 jumped to Rs6.3 billion, a massive 192% up from Rs2.2 billion in CY20.

The return on equity (ROE) of the company increased in recent years but declined in 2019. However, the ROE showed a positive growth in 2020 and stood at 15.71%, and increased again to 31.28% in 2021. The earnings per share (EPS) of the company demonstrated a mix of trends during the recent years. In 2019, the EPS was negative and then showed a remarkable growth and reached PKR2.12 in 2020 and PKR 4.96 in 2021.

In the past six years, the company has been able to attain a net profit margin of 6% in 2021, mostly as a result of increased turnover brought on by effective price decisions, marketing strategies, and cost-cutting measures. Additionally, the company earned PKR2.8 billion through the sale of its stock stake in wind energy projects.

About Company

Fauji Fertilizer Bin Qasim Limited is a public limited company incorporated in Pakistan under the Companies Ordinance,1984 (now replaced by the Companies Act, 2017). The company is principally engaged in the manufacture, purchase, and marketing of fertilizers.

Credit : Independent News Pakistan-WealthPk