FFBL_2QCY22 Review - Above expectation, (AKD Off the Analyst's Desk Jul 26, 2022)
AKD, Off the Analyst's Desk
FFBL: 2QCY22 Review - Above expectation
Fauji Fertilizer Bin Qasim Limited (FFBL) announced its 2QCY22 result, where it posted unconsolidated PAT of PkR1.7bn (EPS: PkR1.38), down 32%YoY. This takes cumulative 1HCY22 PAT to PkR3.4bn (EPS: PkR2.64) vs PAT of PkR3.8bn (EPS: PkR3.0) in same period last year. The result is above our expectation due to higher other income and higher volumetric sales.
- Company posted topline of PkR46.1bn vs PkR16.9bn in SPLY, depicting an increase of ~173%. The primary reason for higher sales is attributable to higher realized DAP prices and ~50% increase in DAP volumetric sales. On QoQ basis, topline recorded a growth of ~86%, on the back of higher volumetric sale and fertilizer prices.
- Gross margins clocked in at ~19% during 2QCY22, down by 270bps on QoQ basis, attributable to higher phosacid prices (up by 9% QoQ).
- Finance cost witnessed a jump of 49%/28% on YoY/QoQ basis, amid rising financing cost.
- Other income clocked in at PkR3.2bn, up by 31%/191% YoY/QoQ. The increase is mainly attributable to dividend from PMP.
- Other expenses for 2QCY22, clocked in at PkR2.9bn, vs PkR0.94bn in 1QCY22. The significant jump in other charges is due to exchange loss on account of trade payables.
- Effective tax rate for the quarter clocked in at ~71%, attributable to imposition of super tax and poverty alleviation tax announced in federal budget. As per management, company has recorded super tax of PkR2.7bn in Jun’22.
AKD Research
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.