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Tag: Fauji Foundation

  • FFBL declares Rs1.7 billion in 2QCY22

    FFBL declares Rs1.7 billion in 2QCY22

    KARACHI: Fauji Fertilizers Bin Qasim Limited (FFBL) on Tuesday declared Rs1.7 billion profit after tax (PAT) for the quarter ended June 30, 2022.

    The company announced financial results for its 2QCY22 results, where it posted unconsolidated PAT of Rs1.7 billion (EPS: 1.38), down 32 per cent YoY.

    This takes cumulative 1HCY22 PAT to Rs3.4 billion (earnings per share (EPS): Rs2.64) vs PAT of Rs3.8 billion (EPS: Rs3.0) in same period last year.

    READ MORE: Hyundai announces second quarter financial results

    The result is above our expectation due to higher other income and higher volumetric sales.

    Company posted topline of Rs46.1 billion vs Rs16.9 billion in same period last year (SPLY), depicting an increase of 173 per cent. The primary reason for higher sales is attributable to higher realized Diammonium phosphate (DAP) prices and 50 per cent increase in DAP volumetric sales.

    On QoQ basis, topline recorded a growth of 86 per cent, on the back of higher volumetric sale and fertilizer prices.

    READ MORE: PTCL declares 39% growth in half year net profit

    Gross margins clocked in at 19 per cent during 2QCY22, down the 270 basis points (bps) on QoQ basis, attributable to higher phosacid prices (up by 9 per cent QoQ).

    Finance cost witnessed a jump of 49 per cent/ 28 per cent on YoY/QoQ basis, amid rising financing cost.

    Other income clocked in at Rs3.2 billion, up by 31 per cent/ 191 per cent YoY/QoQ. The increase is mainly attributable to dividend from PMP.

    Other expenses for 2QCY22, clocked in at Rs2.9 billion, vs Rs0.94 billion in 1QCY22. The significant jump in other charges is due to exchange loss on account of trade payables.

    READ MORE: Pakistan banks register record profit in 1Q2022

    Effective tax rate for the quarter clocked in at 71 per cent, attributable to imposition of super tax and poverty alleviation tax announced in federal budget. As per management, company has recorded super tax of Rs2.7 billion in June, 2022.

  • Fauji Cement announces setting up new plant

    Fauji Cement announces setting up new plant

    KARACHI: Fauji Cement Company Limited has announced to set up a Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said that consequent to construction activity picking up and significant spend on infrastructure, expected to continue, the board of directors of the company had decided to invest in additional cement capacity.

    According, the board of directors of Fauji Cement Company Limited in its meeting held on February 19, 2021 has approved subject to all regulatory approvals setting up of Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    The equity portion of the expansion will be funded through internal cash generation.

    “The total project cost will be announced after conclusion of negotiation with the suppliers and contractors,” the company said.

    The construction work on the project is expected to commence with current financial year and is expected to have a construction period of above 2.5 years.

    Currently, the company is targeting financial closed by March 31, 2021.

  • Fauji Foundation allowed due diligence to acquire majority stake in Silkbank

    Fauji Foundation allowed due diligence to acquire majority stake in Silkbank

    KARACHI: The board of directors (BOD) of Silkbank Limited on Thursday approved to allow Fauji Foundation to conduct due diligence for acquiring majority stake of the bank.

    The bank in a notice sent to the Pakistan Stock Exchange (PSX) stated that M/s. Fauji Foundation had expressed an interest in acquiring the majority stake in Silkbank Limited.

    As part of the process, the bank had been requested to allow Fauji Foundation to conduct due diligence of Silkbank and in this regard the Fauji Foundation intended to apply to the State Bank of Pakistan (SBP) for the requisite approval of the same.

    “The board of directors of Silkbank Limited in its meeting held on January 28, 2021, has subject to the approval of the State Bank of Pakistan, given its in-principal approval to allow Fauji Foundation to conduct the required due diligence and evaluation the information that will be provided by Silkbank in this regard,” the bank informed the PSX.

    Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate in Pakistan which “Earns To Serve” the interests of ex-servicemen.

    According to its official website, the group is basically a Charitable Trust founded in 1954 for the welfare of the ex-servicemen and their dependents.

    It is incorporated under the Charitable Endowments Act 1890.

    The history of Fauji Foundation dates back to 1945, when a Post War Services Reconstruction Fund (PWSRF) was established for Indian War Veterans who served the British Crown during WW-II. At the time of partition (1947) when Pakistan came into being, the balance fund was transferred to Pakistan in the proportion of its post WW-II veterans. Till 1953, the fund remained in the custody of the civilian Government, when in 1954 it was transferred to the Army.

    The Army instead of disbursing the balance fund of about Rs 18.2 millions (USD 0.2 million) among the beneficiaries, invested it in establishing a Textile Mill. Later from the income of the textile mill, it established first 50 bedded TB hospital at Rawalpindi.

    Fauji foundation is proud that from Rs 18.2 million in 1953, it today runs more than 18 industries, the income from which is utilized to serve about 9 million beneficiaries (5 % of country’s population). Generally, more than 80 percent of the income goes towards the welfare activities every year.

    The welfare is conducted through health care, education and vocational/technical training. To a limited extent welfare is also a by- product of employment generated for the beneficiaries through commercial and welfare activities. Presently, the welfare is conducted through 143 medical facilities, 142 Schools & Colleges, 45 Foundation Institute Technology.