Fatima Fertilizers sees a mere growth of 4% in earnings during 9MCY20

October 29, 2020 (MLN): Fatima Fertilizers Limited has reported earnings of Rs. 9.56 billion (EPS: 4.55) for the nine months ended September 30, 2020, which is around 4% higher than the profits recorded in the same period of last year.

The trivial change in earnings was mostly due to gross profits which remained somewhat static at Rs. 21 billion over the same period of last year. The revenues fell by 9.3% owing to lower dispatches, whereas the cost of sales fell by 17%.

The major highlight for the company during the period under review was the 114% growth in other income. Other factors such as a 13% fall in other expenses and an 11.4% increase in the share of profit from associates also provided some respite to the company.

However, the positive impact of the above changes was partially negated by an increase in finance costs and income tax expense by 15% and 1.7%, respectively.

Financial Results for the nine months ended September 30, 2020 (Rupees'000)

 

Sep-20

Sep-19

% Change

Net sales

    46,448,423

    51,238,878

-9.3%

Cost of sales

 (25,073,685)

  (30,135,228)

-16.8%

Gross profit

    21,374,738

    21,103,650

1.3%

Distribution cost

    (2,777,209)

    (2,689,839)

3.2%

Administrative expenses

    (2,407,711)

    (2,009,946)

19.8%

Other income

      1,548,445

          723,786

113.9%

Other operating expenses

    (1,219,326)

    (1,396,206)

-12.7%

Share of profit / (loss) from associates

            18,607

             16,701

11.4%

Finance cost

    (2,901,676)

    (2,526,354)

14.9%

Profit before taxation

    13,635,868

    13,221,792

3.1%

Taxation

    (4,073,358)

    (4,003,372)

1.7%

Profit after taxation

      9,562,510

       9,218,420

3.7%

Earnings per share

4.55

4.39

3.6%

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Posted on: 2020-10-29T11:30:00+05:00

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