Fauji Fertiliser profit rose 2 percent and the company declared 15 percent dividend for the last quarter of year ended on December 31, 2003, on back of higher sales and cut in financial cost.
Fauji's profit from January to December amounted to Rs 3.144 billion as compared with Rs 3.073 billion of previous year. The earning per share rose to 12.26 rupees from 11.98 rupees a year ago.
The company paid a dividend of 1.5 rupees per share or 15 percent for the fourth quarter, totalling 10 rupees or 100 percent. The company in 2002 had declared a dividend of 90 percent.
The sales of the company rose to Rs 21.034 billion as compared to Rs 16.786 billion of previous year. The financial charges recorded a decline of 22 percent to Rs 520 million.
According to an analyst, improved irrigation conditions and above normal monsoon rains helped farmers to buy more fertiliser during the year, boosting the company's sales.
Financial charges moved down because of the falling interest rates. Several companies following the decline interest rates have restructured their expensive loans from cheaper loans, an analyst said.
Fauji will reap complete benefits of cheaper debt in 2004, which will boost profitability.
"We expect Fauji to earn Rs 3.4 billion to 3.5 billion (EPS Rs13.25-13.65) during 2004, and thus pay out a higher dividend (Rs10.0-10.5/share) as well. We have assumed that the next feed gas price increase scheduled for July 1, 2004 is likely to be passed on to farmers without any intervention from the government".