FFBL reports 82% YoY decline in bottom line for 1HCY12

 

          Fauji Fertilizer Bin Qasim (FFBL) reported PAT of PKR644mn (EPS: PKR0.69) for 1HCY12, down by 82% YoY

 

          For 2QCY12, the company reported PAT of PKR1,030mn (EPS: PKR1.10), representing YoY decline of 47%

 

          Against expectations, the company did not declare any interim dividend

 

          For 2QCY12, FFBL’s revenue declined by 6% YoY to PKR9,357mn due to lower offtake. FFBL sold ~135k tons of urea and ~85k tons of DAP in 2QCY12, lower by 6% and 17% respectively on YoY basis

 

          2QCY12 gross margins for the company clocked in 1300 bps lower YoY to ~29% due to cess imposed on feed and fuel gas usage from the beginning of CY12

 

          The result was below our expectations on account of reported PKR123mn loss from JV. We maintain our BUY stance on the scrip, currently trading at CY12E PER of 7.0x and presenting 12% dividend yield

FFBL reports 82% YoY decline in bottom line for 1HCY12