Fauji Fertilizer Records Impressive 36% Profit Surge, Reaching Rs. 10.52 Billion in Just 3 Months

 

Fauji Fertilizer Company Reports Strong Q1 Performance with Profit Surge

Fauji Fertilizer Company Limited (FFC) announced impressive financial results for the first quarter of 2024, showcasing a significant increase in profitability. The company's profit after tax jumped by 36.1% year-over-year (YoY), reaching Rs10.52 billion. This translates to earnings per share (EPS) of Rs8.27.

Several factors contributed to FFC's robust performance. The company's manufacturing plants operated above capacity, leading to a 3% rise in Sona Urea production compared to Q1 2023. This increased production capacity allowed FFC to meet the growing demand for fertilizers in the agricultural sector.

FFC also saw a noteworthy 5% increase in Sona Urea sales volume, reaching 661,000 tonnes in Q1 2024. Additionally, the company played a crucial role in ensuring a steady fertilizer supply for farmers by marketing 94,000 tonnes of government-imported urea. Overall, FFC's aggregate urea sales surged to 755,000 tonnes, reflecting substantial growth compared to the first quarter of last year.

Furthermore, FFC capitalized on higher gas prices experienced towards the end of 2023. This led to an increase in selling prices, which, combined with the surge in sales volume, resulted in a significant rise in sales revenue. FFC's sales revenue for Q1 2024 reached Rs58.4 billion, compared to Rs36.41 billion in the same period of 2023.

Demonstrating its commitment to shareholder value, FFC declared an interim cash dividend of Rs5.5 per share alongside its positive financial results. While profitability in dollar terms remained steady at $38 million, FFC's strong performance in the domestic market signifies the company's resilience and effective management strategies in a challenging economic environment.