For the first quarte ending March 2024, Fauji Fertilizer Bin Qasim Limited (FFBL) reported a profit after tax of Rs. 4,306 million, compared to a loss after tax of Rs. 5,429 over the same quarter last year. The earnings per share came out at Rs. 3.33 for the quarter. FFBL did not announce any cash dividends along with the results announcement.
The gross profit margin in this quarter was 19%, compared to 7% in the same quarter last year. And the tax rate for the quarter was 47%.
Revenue of FFBL, in this quarter, increased almost one and a half times, gross profit increased by over three times, and financial charges halved, compared to same quarter last year. This turned a loss of Rs. 5.4 billion last year to a PAT of 4.3 billion this quarter.
In the same quarter last year, FFBL recorded a significant exchange loss of over Rs. 4.6 billion, whereas this quarter saw a negligible amount in comparison. Furthermore, FFBL's other income for this quarter exceeded Rs. 4 billion, a stark contrast to the less than Rs. 1 billion reported last year. The bottom line of FFBL's profit and loss account has been experiencing substantial variation due to exchange losses/gains and other income.
Comparing the latest quarter with the immediate preceding quarter ending December 2023, revenue and gross profit paint a different picture; revenue decreased by 17%, gross profit almost halved, and financial charges decreased by 10% compared to the same quarter last year. In December 2023 quarter the gross margin of FFBL was 29% that has seen a substantial drop to 19% in this quarter.
See Our Valuation Note on FFBL
FFBL is trading at a market price of Rs. 33.7. In the last 52 weeks, the FFBL stock reached a high of Rs. 37.5 and touched a low of Rs. 10.8.
FFBL has a price-earnings ratio of 3.1 and a price-to-book ratio of 1.6. It has a dividend yield of 3.0% on a twelve-month trailing basis.
Over the past 6 months, FFBL returns have been 77%, compared to the 32% return of the KSE100 Index. And over the past year, FFBL returns have been 180%, compared to the 78% return of the KSE100 Index.
The market cap of FFBL Rs. 43,489 million.
FFBL has a 0.66% weighting in KSE100 Index.
FFBL Results Announcement, March 2024
