FFBL 1QCY24 Result Review—Increased earnings amidst normalized tax charge, (AKD Off the Analyst's Desk Apr 25, 2024)
AKD, Off the Analyst's Desk
FFBL 1QCY24 Result Review—Increased earnings amidst normalized tax charge,
Fauji Fertilizer Bin Qasim Limited (FFBL) announced its 1QCY24 result today, where the company posted earnings of PkR4.3bn (EPS: PkR3.3) compared to PkR4.0bn (EPS: PkR3.1) in 4QCY23, an increase of 6%QoQ. The said earnings growth is predominantly attributed to a normalized tax charge during the quarter, in contrast to one-time tax adjustments in the preceding quarter. The result come in line with market and our expectations.
- Topline clocked in at PkR46.5bn vs. PkR56.2bn in the preceding quarter, a 17%QoQ decline, mainly due to a reduction in offtakes, with DAP and Urea sales falling by 25% and 8% during the quarter, respectively.
- Gross margins contracted to 18.9% vs. 28.4% in 4QCY23, with the decline likely attributable to upward adjustment in gas pricing from Feb’24.
- Operating expenses experienced a 48% quarterly decline to PkR2.8bn, possibly due to lower transportation expenses amidst the aforementioned lower offtakes.
- Other income clocked in at PkR4.0bn (↑28%QoQ) due to a surge in short-term investments to PkR33.7bn in Dec'23 accounts from PkR13.1bn at Sept'23 end.
- Finance costs witnessed a 11%QoQ decline to PkR1.0bn vs. PkR1.1bn in the preceding quarter, likely attributed to reduced debt levels.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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