LAHORE (PPI) The FFC has announced its 1QCY11 result on Monday. The earnings of the company posted a substantial increase of 51 percent as PAT stood at Rs4.10b as against to PAT of Rs2.73b in the same period last year. Moreover, in line with our expectations, the company has announced a cash dividend of Rs4.50/share. Top line of the company showed an upsurge of 17 percent to Rs11.10 billion in 1QCY11 as against Rs9.499 billion mainly due to average 40 percent higher urea prices. Gross profit of the company posted a rise of 46 percent to Rs5.91b as against Rs4.04 in the corresponding period last year. DCF based target price for FFC is Rs148. The scrip is currently trading at a 4pc discount to its fair value based on yesterdays closing. Fauji Fertilizer Company (FFC) announced its 1Q2011 result today. The company posted earnings of Rs4.1 billion (EPS Rs4.84) versus Rs2.7 billion (EPS Rs3.22) in 1Q2010, a growth of 51 percentYoY. Earnings increased on the back of higher urea prices in since the start of the year. Despite gas curtailment, net sales of the company witnessed a growth of 17 percent to Rs11.1 billion compared to Rs9.5 billion in the corresponding period last year. As a result, gross margins improved to 53 percent from 43 percent in the same period last year. On the expenses front, distribution costs for the company rose by 13 percentYoY to Rs1.0 billion only to be offset by declining finance cost of Rs229mn (down 13 percentYoY).