Fauji Fertilizer Company Limited
Condensed Interim Financial Statements
Period Ended March 31, 2023
COMPANY INFORMATION
BOARD OF DIRECTORS | Mr. Waqar Ahmed Malik |
Chairman | |
Mr. Sarfaraz Ahmed Rehman | |
Managing Director & Chief Executive Officer | |
Dr. Nadeem Inayat | |
Mr. Saad Amanullah Khan | |
Ms. Maryam Aziz | |
Maj Gen Naseer Ali Khan, HI(M) (Retd) | |
Mr. Peter Bruun Jensen | |
Maj Gen Ahmad Mahmood Hayat, HI(M) | |
(Retd) | |
Syed Bakhtiyar Kazmi | |
Mr. Shoaib Javed Hussain | |
Mr. Jehangir Shah | |
Dr. Ayesha Khan | |
Mr. Iftikhar Ali Sahoo | |
CHIEF FINANCIAL OFFICER | Syed Atif Ali |
Tel No. +92-51-8456101 | |
Fax No. +92-51-8459961 | |
E-mail: atif_ali@ffc.com.pk | |
COMPANY SECRETARY | Brig Irfan Khan, TBt (Retd) |
Tel No. +92-51-8453101 | |
Fax No. +92-51-8459931 | |
E-mail: secretary@ffc.com.pk | |
REGISTERED OFFICE | 156 - The Mall, Rawalpindi Cantt, |
Pakistan | |
Website: www.ffc.com.pk | |
Tel No. +92-51-111-332-111, 8450001 | |
Fax No. +92-51-8459925 | |
E-mail: ffcrwp@ffc.com.pk |
PLANTSITES | Goth Machhi, Sadiqabad |
(Distt: Rahim Yar Khan), Pakistan | |
Tel No. +92-68-5954550-64 | |
Fax No. +92-68-5954510-11 | |
Mirpur Mathelo | |
(Distt: Ghotki), Pakistan | |
Tel No. +92-723-661500-09 | |
Fax No. +92-723-661462 | |
MARKETING DIVISION | Lahore Trade Centre, |
11 Shahrah-e-Aiwan-e-Tijarat, | |
Lahore, Pakistan | |
Tel No. +92-42-36369137-40 | |
Fax No. +92-42-36366324 | |
KARACHI OFFICE | B-35, KDA Scheme No. 1 |
Karachi, Pakistan | |
Tel No. +92-21-34390115-16 | |
Fax No. +92-21-34390117 & 34390122 | |
AUDITORSS | A.F.Ferguson & Co. |
Chartered Accountants | |
74 - East, Blue Area, | |
Jinnah Avenue, Islamabad | |
Tel No. +92-51-2273457-9,2870045-85 | |
Fax No. +92-51-2206473 | |
SHARES REGISTRAR | CDC Share Registrar Services Limited |
CDC House, 99 - B, Block - B | |
S.M.C.H.S., Main Shahra-e-Faisal | |
Karachi - 74400 | |
Tel: +92-0800-23275 | |
Fax: +92-21-34326053 |
FAUJI FERTILIZER COMPANY LIMITED
DIRECTORS' REVIEW
FOR THE PERIOD ENDED MARCH 31, 2023
Valued Shareholders,
We are pleased to present our review on the operations and financial results of the Company for the first quarter ended March 31, 2023.
The production facilities operated at a combined efficiency of 124% and delivered 633 thousand tonnes of Sona Urea, which was in line with the corresponding quarter of 2022. Sona urea offtake was recorded at 631 thousand tonnes which was also same as last year.
Cost of sales increased mainly due to higher cost of imported fertilizers besides inflation, which touched one of the highest inflation rates of around 35%. Soaring interest rates resulted in increased finance cost of Rs1.4 billion, higher by 37% compared to last year. Shortage of foreign currency reserve and persistent Pak rupee devaluation continue to cause delay in procurement of essential spares and machinery besides escalating the cost of such items. The rates of General Sales Tax have also been increased by the Government further pressurizing the cost of the Company.
The increase in interest rates enabled the Company to earn income on deposits of Rs 3.5 billion compared to Rs 2.2 billion last year. This income included an unrealized exchange gain of Rs 930 million earned on the foreign exchange deposits of Company due to devaluation of Pak rupee. The net profitability of the company thus stood at Rs 7.7 billion compared to 6.2 billion last year with
FAUJI FERTILIZER COMPANY LIMITED
DIRECTORS' REVIEW
FOR THE PERIOD ENDED MARCH 31, 2023
earnings per share of Rs. 6.08 per share for the period under review against Rs 4.90 per share for 2022. The profitability in dollar terms however declined to USD 30 million compared to USD 35 million last year.
In view of commendable results, the Board of Directors is pleased to announce first interim dividend of 42.6 % (Rs 4.26 per share) for the period.
FUTURE OUTLOOK
The Country continues to face socio economic uncertainty and turmoil with inflation touching one of the highest levels at 35%, high interest rates of around 22%, increased GST rates of 18% to 25%, besides continued devaluation of Pak rupee, negatively impacting the costs of the Company. Shortage of foreign currency reserves have also caused delay in procurement of essential spares and machinery.
Gas prices are expected to increase and the Government is considering application of WACOG under the premise of price unification. This would result in excessive increase of FFC's gas cost and thereby would make this business unsustainable whereas cost of other fertilizer manufacturers is not expected to be impacted materially. The Company has been consistently contesting for a level playing field with the Government, whereas is also being asked not to pass on the impact of gas price escalation.
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Fauji Fertilizer Company Limited published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 10:09:26 UTC.