FFBQFauji Fertilizer Bin Qasim Limited (FFBL) has declared its financial results for the year 2015 (CY15) and also announced payment of 30.50 percent dividend. The results were above market expectations.

Profit after tax of FFBL for CY15 went up marginally to Rs4.1 billion (EPS: Rs4.35) from profit of Rs4.02 billion (EPS: Rs4.30) for CY14.  

Net sales of the Company rose by 6 percent to Rs52.2 billion for CY15 from Rs49.4 billion a year ago. This improvement can be attributed to a 7 percent increase in DAP (di-ammonium phosphate) and a 28 percent growth in urea off-take.

Gross margins shrank to 14 percent from 22 percent earned a year ago due to subsidized DAP sales, resulting in 12 percent contraction of DAP primary margins to US$239 per ton.

Other income surged by 5.37 times for CY15 amid recognition of the DAP subsidy under this head.

The FFBL also witnessed a 42 percent YoY jump in financial charges to Rs1.87 billion due to debt financing of future projects along with higher working capital requirement.

The company booked effective tax rate of 25 percent for the year under review as compared to 31percent for CY14.

According to a Pakistan Stock Exchange (PSX) notice, Board of Directors of the FFBL have decided to form a committee to consider the offer for sale of certain voting and non-voting shares in Noon Pakistan Limited.

FFBL result, subsidy on DAP, FFBL new projects

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