Fertiliser: FAUJI FERTILISER COMPANY LIMITED - First Quarter Ended March 31 2004
It is a public limited company primarily engaged in the manufacturing and marketing of fertiliser. Its manufacturing facilities are situated at Goth Machhi, Sadikabad in the province of Punjab.
Fauji Fertiliser Company Ltd (FFC) is also the holding company of its subsidiary Fauji Company Fertiliser Bin Qasim Limited (FFBL).
Consequent to FFBL becoming subsidiary of FFC, the prospect of merger of both companies is under review.
The closing market price of FFC share is Rs 130 per share which is 13 times of the par value of Rs 10. During the last one year the price of the share shot up 62.6% to Rs 132.50 from Rs 81.50 per share.
The market price of FFBL share is trading at Rs 19.25 per share. Whereas the market price of its right issue is Rs 10.75.
The directors report that the year 2004 started on a positive note with new achievements in sales and higher domestic fertiliser off-take for Rabi due to attractive commodity prices and improved water availability.
Industry Urea sales for the Q1 2004 of 852 thousand tonnes were 19% higher than sales achieved during the Q1 2003. Industry production was 970 thousand tonnes, 5% lower than the production for Q1 2003.
During the first quarter 2004, the combined urea production of its all three plants stood at 506 thousand tonnes as against 553 thousand tonnes produced in the same period last year.
The decrease in aggregate production was mainly attributed to shut down of its Base and Expansion units for annual maintenance turnaround during the first quarter 2004.
FFC marketed 503 thousand tonnes of own manufactured urea during the three months. This was the highest ever first quarter sales in any year representing 99% of production and registering a growth of 24% over 406 thousand tonnes sold during corresponding period of 2003.
In addition, 66 thousand tonnes of granular urea were marketed on behalf of FFBL, capturing a collective all time record urea market share of 66.5% as against 60% achieved in 2003.
Sales in terms of value declined by 5.03% whereas gross profit although on lower side but reached very close to Q1 2003. Net profit for the period at Rs 706.56 million increased by 16.03% due to higher urea sales and lower financial charges.
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Performance Statistics (Million Rupees)
Balance Sheet - As At -
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March 31 Dec 31
2004 2003
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Share Capital-Paid-up: 2,564.96 2,564.96
Reserves: 8,830.70 8,957.75
Shareholders Equity: 11,395.66 11,522.71
L.T Debts: 4,020.83 4,515.22
Deferred Taxation: 2,485.00 2,522.00
Current Liabilities &
Provisions: 6,133.55 8,659.54
Fixed Capital Expenditure: 9,099.53 9,136.54
Goodwill: 1,856.93 1,883.08
L.T Investments: 6,153.19 7,083.15
L.T Loans & Advances: 64.22 63.92
L.T Deposits, Prepayments
& Deferred Costs: 100.68 125.51
Current Assets: 6,760.49 8,927.27
Total Assets: 24,035.04 27,219.47
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Profit & Loss A/c For the First Quarter
Ended March 31 2004 2003
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Sales: 3,795.37 3,996.24
Gross Profit: 1,564.63 1,566.49
Operating Profit: 1,182.93 1,122.47
Other Income: 109.56 138.85
Financial (Charges): (72.84) (201.12)
Profit Before Taxation: 1,107.56 959.92
Profit After Taxation: 706.56 608.92
First Interim (Dividend)
Rs 3.25 (2003: Rs 3) per share: (833.61) (769.49)
Earning Per Share (Rs): 2.75 2.37
Share Price (Rs) on 09.07.04: 130.00 -
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Financial Ratios
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Price/Earning Ratio: 40.00 -
Book Value of Share (Rs): 44.43 44.92
Debt/Equity Ratio: 26:24 28:72
Current Ratio: 1.10 1.03
Gross Profit Margin (%): 41.22 39.20
Net Profit Margin (%): 18.61 15.23
R.O.A (%): 2.94 2.24
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COMPANY INFORMATION: Chairman: Lieutenant General Syed Mohammad Amjad, HI, HIM (Retired); Chief Executive & Managing Director: Lieutenant General Mahmud Ahmed, HI (M) (Retired); Director: Qaiser Javed; Secretary: Brigadier Mohammad Saleem Suleman, SI (M) (Retired); Registered Office: 93-Harley Street, Rawalpindi Cantt.; Factory: Goth Machhi, Sadikabad (Distt. Rahim Yar Khan); Web Address; N.A.
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