FFC - 3QCY23 Result review, (AKD Off the Analyst's Desk Oct 25, 2023)
AKD, Off the Analyst's Desk
FFC - 3QCY23 Result review,
FFC announced its 3QCY23 results wherein they posted unconsolidated profit after tax of PkR9.1bn (EPS: PkR7.18/sh) vs. PkR5.2bn (EPS: PkR4.12/sh) in the SPLY, depicting an increase of 74.2%YoY. On a QoQ basis, the company posted a 71.0% hike in the bottomline, owing to higher other income and lower taxation, amidst deteriorated gross and operating margins. On a cumulative basis, the company has managed an earnings increase of 49.7%YoY in 9MCY23 against SPLY owing to strong pricing power amidst lowest industry wide gas cost. Furthermore, the company has announced a PkR3.98/sh interim payout, in addition to PkR7.41/sh paid out in the 1HCY23.
- The company managed to post a topline of PkR44bn during the quarter under review (↑24.1%/80.3% QoQ/YoY) on the back of higher prices and higher offtakes (Urea: ↑7.6%/27.5% QoQ/YoY and DAP: ↑6.4%/3x QoQ/YoY).
- Gross margins took a plunge to ~31% vs. ~47% in the last quarter and ~39% in the SPLY. We are awaiting full details for clarity.
- Other income clocked in substantially higher at PkR6.2bn, ↑1.3x/1.2x QoQ/YoY, of which we expected 2.6bn to be finance income. We opine the remainder to have come as dividends from PMP and power holdings of the company. We are awaiting further clarity on this.
- Finance cost has increased marginally by 13.0%/11.4% QoQ/YoY.
- Taxation lent support to the bottomline remaining normalized at 34.2% effectively vs. 61.0% last quarter where super tax retrospective imposition wiped out most of the earnings.
- The company’s dividend payout remained below our expectation at PkR3.98/sh, with a payout of 55.4%.
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.