Fauji Fertilizer Company Limited (FFC) posted unconsolidated earnings of Rs17.1 billion in the calendar year 2019 (CY19) as compared to Rs14.4 billion in CY18.
The company's earnings per share increased to Rs13.4 in CY19 against Rs11.3 in the same period in CY18.
Along with the result, company also announced final cash dividend of Rs3.25/share taking full year payout to Rs10.8/share against Rs8.9/share, in 2018.
Higher earnings in CY19 were on the back of increase in gross margins by 2.6ppt mainly due to better product prices of urea (21 percent) and Dap (10 percent), and 14 percent year-on-year higher other income amid higher interest earned on GIDC accumulation and higher dividend income from subsidiaries and associates, Saqib Hussain Khan, at Sherman Securities said.
However, finance cost of the company remained higher by 51 percent on the back of higher borrowings along with increased interest rates, he added. Furthermore, increase in other expense by 62 percent also affected the bottom line.
In the fourth quarter of CY19 alone, EPS of the company clocked in at Rs3.6, down 21 percent on year-on-year basis. Major reason behind lower earning was decline in urea and DAP off-take by 9 percent, higher finance cost by 81 percent and increase in other expenses by 54pc, he added.
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