FFC - 2QCY2023 Result review, (AKD Off the Analyst's Desk July 25, 2023)
AKD, Off the Analyst's Desk
FFC - 2QCY2023 Result review
FFC announced its 2QCY23 results wherein, they posted profit after tax of PkR5.3bn (EPS: PkR4.2/sh) vs. PkR3.4bn (EPS: PkR2.6/sh) in the SPLY, depicting an increase of 59.1%YoY. On a QoQ basis, the company has recorded a decline in the bottom line of 30.8% mainly owing to i) increased tax charge, ii) lower other income, and iii) higher other expenses. On a cumulative basis, the company has managed an earnings increase of 36.2% in the 1HCY23 against the SPLY owing to strong pricing power amidst the lowest Industry wide gas cost. Furthermore, the company has announced a PkR3.15/sh interim payout, in addition to PkR4.26/sh paid out in the 1QCY23.
- The company managed to post a topline of PkR36bn during the quarter under review (↓2.3%/↑25.2% QoQ/YoY) combined with lower COGS, taking the gross margin to a rich 46.8% in contrast to 1QCY23 margins of 40.0% and 40.7% in 2QCY22. This remains due to the company benefitting from an unchanged gas cost (Mari network cost at PkR302/mmbtu remaining unchanged in the notification shared at the start of the year), and timely increases in urea prices.
- Other income clocked in lower at PkR2.8bn, ↓22.4%/30.4% QoQ/YoY due to declining short term investments as was witnessed in 1QCY23 and a possible non-payment of dividends by Group companies. Finance cost has expectedly come in strong at PkR1.2bn owing to record high interest rates.
- Distribution cost and other expenses have clocked in higher by 26.5% and 29.4% on a yearly basis, respectively, owing to inflationary pressures.
- The major dent in earnings despite strong margins came from the increase in taxation, effectively coming in at 61.0% due to the imposition of a 10% super tax in addition to the corporate tax rate.
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.