KARACHI: The unconsolidated profit of Fauji Fertilizer Bin Qasim Limited (FFBL) witnessed a growth of 28 per cent to Rs1.62 billion translating into the earnings per share (EPS) of Rs1.26 during the first quarter of 2022.

The company recorded a profit after tax of Rs1.26 billion (EPS: Rs0.98) during the same period of last year.

The earnings remained lower than expectation due to slightly lower gross margins and higher tax charges.

The revenue of the company clocked-in at Rs24.7 billion for the quarter, recording an increase of 91 per cent on a year-on-year basis.

“The reason for the significant increase in the topline is mainly due to the availability of gas during the first quarter, higher DAP sales and better pricing. However, the revenue fell 41 per cent on a quarter-on-quarter basis, attributable to the seasonal dip in DAP offtake,” Muhammad Shahroz at Insight Securities said.

FFBL’s gross margins clocked-in at 21.7 per cent, compared with 19 per cent during the same period of last year, owing to higher DAP prices.

The company’s finance cost witnessed an increase of 8 per cent year-on-year and 36 per cent quarter-on-quarter, attributed to increase in the financing rate.

Other income of the company recorded a decline of 29 per cent on a year-on-year basis, due to the absence of dividend income, however, on a quarterly basis, other income rose by 25 per cent which can be attributed to higher short term investments and profit rate.

The effective tax rate for the quarter clocked-in at 36 per cent, compared with 26 per cent during the same period last year.