August 27, 2021 (MLN): Fatima Fertilizer Company Limited (FATIMA) announced its 1HCY21 result today, posting profits of Rs9.31 billion (EPS: Rs4.44), up by 30.1% YoY when compared to Rs7.16bn (EPS: Rs3.41) recorded in 1HCY20.
According to the financial statement sent by the company to PSX, the top line witnessed a whopping 90.5% YoY increase due to higher fertilizer offtake and better pricing dynamics during 1HCY21. Accordingly, the gross profit of the company jumped by 38% YoY to Rs20.92bn during the said period. However, the gross margin has squeezed to 44% from 61% due to a 2.7x YoY increase in the cost of sales amid additional production volumes from Multan and Sheikhupura plants.
Meanwhile, the company also reported a reduction of 44.6% YoY in finance cost to Rs1.2bn in 1HCY21 due to a lower interest rate regime, which supported the bottom-line growth. Similarly, other income dipped by 39% YoY to Rs500mn. Notably, the company’s effective tax rate came to 36% during the period from 29%.
Owing to strong business dynamics, the second half of 2021 looks promising due to the availability of healthy volumes with the Company and robust strategies put in place to ensure sustainable growth. The company hopes necessary fiscal support in the shape of farmer-friendly Government policies will continue to achieve its operational and financial targets, as per the company report.
|
Consolidated financial results for the half-year ended on June 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-21 |
Jun-20 |
% Change |
|
Sales |
47,307,977 |
24,832,728 |
90.51% |
|
Cost of sales |
(26,381,029) |
(9,647,514) |
173.45% |
|
Gross profit |
20,926,948 |
15,185,214 |
37.81% |
|
Distribution cost |
(2,614,300) |
(1,570,780) |
66.43% |
|
Administrative expenses |
(1,819,707) |
(1,554,061) |
17.09% |
|
Finance cost |
(1,210,609) |
(2,185,419) |
-44.61% |
|
Other operating expenses |
(1,198,178) |
(859,702) |
39.37% |
|
Other income |
500,798 |
1,028,455 |
-51.31% |
|
Share of profit from an associate |
17,757 |
13,030 |
36.28% |
|
Other gain/ (loss) |
|
|
|
|
Unwinding of provision for GIDC |
(194,962) |
– |
|
|
Reversal of loss allowance on subsidy receivable from GoP |
45,030 |
– |
|
|
Profit before tax |
14,452,777 |
10,056,737 |
43.71% |
|
Taxation |
(5,137,985) |
(2,895,784) |
77.43% |
|
Profit for the period |
9,314,792 |
7,160,953 |
30.08% |
|
Earnings per share – basic and diluted (Rupees) |
4.44 |
3.41 |
30.21% |
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