JS Securities Limited – JS Research Beep

Karachi, February 23, 2018 (PPI-OT): Urea and DAP off-take numbers for Jan-2018, in-line with our estimates

As per the recent data published by National Fertilizer Development Corporation (NFDC), urea offtake for the month of Jan-2018 has clocked in at 539k tons in-line with our initial estimates of 530k tons and up by 33% YoY. The augmentation in total dispatches is primarily led by Engro Fertilizers Limited (EFERT) and Fauji Fertilizers Limited (FFC) which depicted a healthy accretion of 144% YoY and 45% YoY, respectively. Industry inventory during the month remained at comfortable levels of 254k tons; significantly down by 75% YoY/25% MoM, respectively.


DAP sales during the month depicted a surge of 51% YoY to 92k tons as compared to 61k tons in the corresponding period last year. DAP inventory clocked around 180k tons; up by 6% YoY as at Jan-2018. Company wise data show FFC and EFERT outperforming its peers with sales depicting a healthy growth of 16x YoY and 3.4x YoY to 26k tons and 16k tons, respectively.