April 30 (Bloomberg) -- Fauji Fertilizer Co., Pakistan’s biggest urea maker, said profit rose 1.6 percent in the first quarter on higher prices.
Net income climbed to 2.73 billion rupees ($32 million), or 4.02 rupees a share, in the three months ended March 31 from 2.68 billion rupees, or 3.96 rupees, a year earlier, Rawalpindi-based Fauji told the Karachi Stock Exchange today. Sales rose to 9.5 billion rupees from 8.2 billion rupees a year ago.
“Higher prices supported sales growth,” said Sarah Afridi, research analyst at IGI Finex Securities Ltd. in Karachi, who recommends investors buy the stock.
Farmers are using more fertilizer to boost farm output, which accounts for a quarter of the South Asian nation’s gross domestic product, after wheat and sugar shortages in past two years caused nationwide riots.
The average price of a 50-kilogram (110.2-pound) bag of urea rose to 755 rupees in the three months to March from 668 rupees a year earlier, according to IGI Finex Securities.
Shares of Fauji Fertilizer, which have risen 11 this year, fell 0.6 percent to 113.11 rupees as of 9:55 a.m. local time on the Karachi Stock Exchange.
To contact the reporter on this story: Farhan Sharif in Karachi at email@example.com.
To contact the editor responsible for this story: Stephen Foxwell at firstname.lastname@example.org.