Fauji Fertilizers
ISLAMABAD: Fauji Fertilizers Bin Qasim, a mega fertilizer company reported billions of rupees in losses in 2023 due to multiple reasons including import curbs and exchange rate volatility.
The company’s revenue for the quarter stood at PKR35.2bn vs. PKR46.1bn in SPLY, down by 24% YoY. The decline in revenue is an outcome of lower offtakes of DAP & urea, down by 24% & 20% YoY, respectively.
Whereas, on a QoQ basis, revenue increased by 12%. Gross margins for the quarter clocked in at 13% vs 7% in the preceding quarter amid higher DAP margins coupled with elevated urea prices and better-fixed cost absorption.
Selling and distribution expenses increased by 19%/128% YoY/QoQ, possibly due to inflationary pressure.
Finance cost increased by ~2.1x YoY, due to a hike in borrowing rate and higher debt levels. Other income for the quarter clocked in at PKR2.8bn down by 22% YoY.
However, on a QoQ basis, other income increased by 183%. ETR for the quarter clocked in 76% vs. 7% in 1QCY23 amid the imposition of a 10% supertax.
Moreover, Fauji Fertilizers Company has received an offer from Fauji Foundation for the purchase of 100% of FFBL’s holding in FML, for a consideration of PKR4.3bn.
Petro-Dealers delay strike for two days
Meanwhile, the Pakistan Petroleum Dealers Association deferred its decision of a nationwide shutdown for two days after meeting Minister Musadik Malik.
The Association said that their representatives are holding another round of dialogues with the government after two days. Hence, the PPDA deferred its countrywide strike.
A day earlier, the Association announced a strike on July 22. However, on Friday the members of the PPDA held a meeting with Minister Musadik Malik and decided to defer the strike.
The Association has demanded an increase in its profit margins due to the ongoing inflation crisis.
The PPDA said, “Association’s more than 10,000 members will shut down all petrol pumps across Pakistan on July 22.”
