KARACHI: Fauji Fertilizer Company Limited (FFC) has posted a 20 per cent increase in net profit to Rs35.69 billion, translating into the earnings per share (EPS) of Rs28.06 for the year ended December 31, 2021.

FFC also declared a final cash dividend of Rs4.65 along with the results, which is in addition to the interim dividend of Rs9.85 already paid to the shareholders.

“The dividend is higher than our expectation due to higher payout ratio amid improved liquidity, we believe,” an analyst at Sherman Securities said.

Net sales during 2021 clocked in at Rs114.34 billion, up 11.9 per cent given the 5 per cent and 67 per cent growth in urea and DAP prices, respectively.

Other income in 2021 surged 21.1 per cent to Rs6.3 billion. “Other income surged on account of higher income from cash and cash balances as well as dividend income from associate companies,” an analyst at Arif Habib Limited said.

Finance cost during the year under review surged 13.27 per cent to Rs2.73 billion due to higher interest rates and increased short term borrowings.

International Steels profit down 31.8% in second quarter

International Steels Limited (ISL) profits declined 31.8 per cent to Rs1.55 billion translating into earning per share (EPS) of Rs3.58 for the quarter ended December 31, 2021.

ISL recorded a profit of Rs2.2 billion and EPS of Rs5.09 in the corresponding period last year.

The company along with the result, also announced the interim cash dividend of Rs2/share.

The company’s net revenue grew 5 per cent during the second quarter of fiscal year 2022 to Rs18.8 billion primarily on the back of higher domestic CRC/GI prices (up 55 per cent), which offset the impact of lower off-takes during the quarter.

“We believe that lower volumes and absence of inventory gains weighed on gross margins, which declined by 5ppts despite better CRC/GI prices compared to the same period last year,” an analyst at Sherman Securities said.

Finance cost increased over 100 per cent to Rs368.4 million due to higher interest rates during the quarter.

On a sequential basis, earnings declined by around 42 per cent during the quarter on the back of lower volumes and inventory losses due to softening in both international and local flat steel prices.

Cumulatively, the ISL posted net profit of Rs4.22 billion and EPS of Rs9.17 in the first half of FY22, compared to profit of Rs2.7 billion and EPS of Rs6.4 during the same period last year, owing to higher prices and better margins compared to last year.