Fauji Fertilizer bin Qasim limited (FFBL) announced their result of CY14. Company profit after taxation fall by 31% to Rs 4.01 billion against Rs 5.79 billion corresponding period of last year which translates into earning per share of Rs 4.30 against Rs 6.21 during the same period last year. This was primarily due to lower offtake of DAP & Urea and increase in Gas Infrastructure Development Cess (GIDC). While once again 4QCY14 remain outstanding as company post massive growth of 131% QoQ to Rs 2.24 billion (EPS: Rs 2.40) versus Rs 971 million (EPS: Rs 1.04) in 3QCY14 mainly due to higher offtake and surge in other income. DAP volumetric sales surge by 67% QoQ to 314k tons in 4QCY14 against 188k tons in 3QCY14. Furthermore company announces interim cash dividend of Rs 2.25/ share, taking payout to Rs 4/ share for CY14.
Lower DAP offtake drag top line growth
Revenue of the company drop by 9% to Rs 49.44 billion compared to Rs 54.45 billion in CY13 mainly due to lower production of DAP owing to gas curtailment. DAP offtake decline by 8.3% to 709k tons in CY14 compared to 773k tons in CY13. Similarly, urea offtake fall by 5.6% to 214k tons versus 226k tons in CY13 mainly due to company more focus on production of DAP and lower gas availability.