Categories: Financials

What to expect from FFC’s Q2 earnings?

Fauji Fertilizer (FFC) is anticipated to show a strong performance this quarter.

The expected earnings per share (EPS) for 2QCY24 stands at PKR 12.35, which is a significant improvement from the figures obtained in the previous year.

One reason for this high EPS is that the Engro Fertilizer (EFERT) plant was down for maintenance during most of the quarter. This meant FFC could sell more volumes than usual.

This can also be attributed to a relative dip in gas costs and a surge in Urea prices, which mounted by a whopping PKR 633 per bag back in April. This price hike has bolstered the retention prices, pushing the gross margins to around 50.8%.

Additionally, an interim cash dividend of PKR 8.3 per share can be expected.

FFC is a strong company and there is nothing to suggest any downside in the company’s fundamentals at the moment.

Source: JS Research, Company financials

Rameen Kasana

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