Fauji Fertilizer Bin Qasim Limited (FFBL PA): Earning Review – By Foundation Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Fauji Fertilizer Bin Qasim Limited (FFBL PA) loss clocked in at Rs2,235mn (LPS Rs2.4) in 1QCY19 against loss of Rs242mn (LPS Rs0.3) in 1QCY18.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We attribute decrease in profitability to (1) lower offtakes, (2) higher losses from food business, (3) uptick in financial charges and (4) lower profitability of PMP and power businesses.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Company&rsquo;s Urea/DAP sales clocked in at23/37K in 1QCY19 (down by 74/74% YoY). We attribute decline in Urea offtakes to lower production and higher prices. Moreover, reduced DAP sales are more of a tactical move by the company amid ...