October 26, 2022 (MLN): The profitability of Fatima Fertilizer Company Limited (PSX: FATIMA) has contracted by around 30% YoY to Rs9.9 billion [EPS: 4.72] in 9MCY22, compared to Rs14bn [EPS: RS6.71] reported in the same period last year (SPLY).
Going by the financial statement sent to PSX, the top line of the company clocked in at Rs99bn, registering 29% YoY growth compared to the same period last year, due to an increase in prices and volumetric growth.
However, the cost of sales increased by 33.5% YoY during 9MCY22 which suppressed the gross margins of the company by 2% to 42% from 44% in 9MCY21.
On the costs front, the company observed a 24% YoY upsurge in distribution costs while administrative expenses and other operating expenses went up by 55% YoY and 71% YoY, respectively.
Notably, the other income surged by 86% YoY to Rs1.4bn which may be due to higher short-term investments and dividend income.
Further, the financial cost of the company inched up by 8% YoY while the share of profit from an associate moved down by 95% YoY.
On the taxation front, FATIMA booked Rs16bn taxes during 9MCY22, showing an increase of 92% YoY against Rs8.4bn taxes paid in SPLY, due to the imposition of super tax on the large-scale industry.
