July 29 (Bloomberg) -- Fauji Fertilizer Co., Pakistan’s biggest urea maker, said second-quarter profit rose 27 percent because of higher sales.
Net income rose to 2.37 billion rupees ($27.7 million), or 3.50 rupees a share, in the three months ended June 30, from 1.86 billion rupees, or 2.74 rupees a share, the Karachi-based company said in a statement to the stock exchange today. Sales rose to 10.4 billion rupees from 8.66 billion rupees.
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.
Fauji, which has risen 9.4 percent this year, increased 0.3 percent to 112.60 rupees at 1:31 p.m. on the Karachi Stock Exchange. The company plans to pay a cash dividend of 3.50 rupees a share, according to the statement.
The company’s profit in the six months ended June 30 rose to 5.1 billion rupees or 7.52 rupees a share, from 4.55 billion rupees, or 6.70 rupees a share, according to the statement. Sales rose to 19.9 billion rupees, from 16.9 billion rupees.
To contact the reporter on this story: Khurrum Anis in Karachi, Pakistan at Kkhan14@bloomberg.net.
To contact the editor responsible for this story: Stephen Foxwell at email@example.com.