Fauji Fertilizer Company (FFC) on Wednesday has announced 2013 Earning Per Share (EPS) of Rs 15.83, down three percent versus EPS of Rs 16.38 during the same period last year. The result was also accompanied by final cash dividend of Rs 4 making full year cash dividend of Rs 15.35 per share, analysts at Topline Securities said.
They said top-line of the company remained flat at Rs 74 billion due to stagnant volumetric off-take of 2.4 million tons and stable urea price in 2013. However, higher increase in cost due to rise in fuel cost contracted gross margins by 2pps to 46 percent in 2013 as against 48 percent in previous year Furthermore, they added higher distribution cost (up 11 percent to Rs 6.1 billion) restricted bottom-line of the company. In 4Q2013, FFC posted EPS of Rs 4.12, down 25 percent as against EPS of Rs 5.53 in the same period last year as company sold 21 percent more urea in 4Q2012 due to inventory pile up. “Dividend income from FFBL translated in EPS impact of Rs 0.34 for FFC in 4Q2013. At current levels we maintain our ‘Hold’ stance on FFC,” analysts said.
