JS Securities Limited - Result Review(30-07-2021)

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JS Securities Limited – Result Review(30-07-2021)

July 30, 2021

Karachi, July 30, 2021 (PPI-OT): FFC: EPS clocks in at Rs2.85 in 2QCY21

Fauji Fertilizer Company Limited (FFC) announced its 2QCY21 result today wherein the company posted an after tax profit of Rs3,621mn (EPS of Rs2.8) during the quarter vis-a-vis PAT of Rs4,874mn (EPS of Rs3.8) in 2QCY20, reflecting a decline of 26% YoY. The primary reason for the drop is the fact that the company has unwound gain on GIDC combined for the last two quarters. Other income for the quarter declined by 35% YoY to Rs1.5bn due to absence of AKBL’s dividend.

Gross margin of the company depicted a 3 ppts increase YoY as a result of better pricing both for Urea and DAP. Barring the impact of Unwinding of GIDC, the EPS is in-line with our expectations. Cumulatively, 1HCY21 profit of the company stands at Rs9,436mn (EPS: Rs7.4) against profit of Rs9,136mn (EPS: Rs7.2) in 1HCY20. Along with the 2QCY21 result, the company announced an interim cash dividend of Rs2.6/share.