Fauji Fertilizer Bin Qasim Limited (FFBL) on Friday announced earnings of Rs 1, 477mn (EPS of Rs 1.58) in 3Q2013 compared to Rs 1, 487mn (EPS of Rs 1.59) in the same period last year. The earnings came in slightly below our estimate where the DPS of Rs 1 also remained below expectation, analysts at JS Global said.
The deviation in earnings from our expectation is primarily due to higher finance cost of Rs 625mn (up 38 percent YoY and 74 percent QoQ) that can be attributed to AKBL transaction. To recall, the Askari Bank (AKBL) transaction was completed towards the early part of June, 2013. The top line of FFBL has dipped by 24 percent YoY on account of 31percent YoY lower DAP off take, they said.
Nevertheless, the bottom-line of the company remained almost flat where better DAP margins and higher urea offtake have delivered an EPS of Rs 1.58 (-1percent YoY) in 3Q2013. Cumulatively, the company reported 55percent YoY higher earnings of Rs 3, 295mn (EPS of Rs 3.53) in 9M2013, they said. Along with the result, they added, FFBL also announced a second interim cash dividend of Rs 1/share that is in addition to first interim cash dividend of Rs 1.75/share.
