Higher offtake, prices boost FATIMA’s Q1 earnings

April 28, 2021 (MLN): Fatima Fertilizer Company Ltd (FATIMA) has unveiled its financial results for the first quarter wherein the company posted net profits of Rs 3.77bn (EPS: Rs 1.80), depicting a rise of 53% YoY as opposed to the net profits of Rs 2.46bn (EPS: Rs 1.17) reported in the corresponding period last year.

The increase in earnings is primarily attributable to higher CAN/NP/DAP offtake which increased by 1.2x/1.2x/2.2x YoY along with price hikes, a report by Intermarket Securities (IMS) mentioned.

Due to higher fertilizer offtake and better pricing dynamics, net revenue increased by a massive 50% YoY to  Rs 21.6bn during 1QCY21. Accordingly, gross profit jumped by 41% YoY to Rs 9.3bn. However, gross margin declined by 3ppt to 43% during the same period.

On the cost front, the major expense head i.e., distribution expenses witnessed an upsurge of 68% YoY to Rs 1.55bn as compared with Rs 928mn in 1QCY20. This can be attributed to higher fertilizer offtake.

Meanwhile, the company registered a decline of 57% YoY in finance cost to stand at Rs 542mn during the said period on the back of lower interest rates, which supported the bottom-line growth. Also, other income came down by 51% YoY to Rs 98mn. FATIMA has booked a re-measurement loss on GIDC payable in other income as well, in view of IMS.

Financial Results for the first quarter ended on March 31, 2021 ('000 Rupees)

 

Mar-21

Mar-20

% Change

Sales

 21,603,567

 14,432,960

49.68%

Cost of sales

 (12,339,013)

 (7,851,904)

57.15%

Gross profit

 9,264,554

 6,581,056

40.78%

Distribution cost

 (1,554,714)

 (928,047)

67.53%

Administrative expenses

 (856,744)

 (753,920)

13.64%

Finance cost

 (542,548)

 (1,248,498)

-56.54%

Other operating expenses

 (498,624)

 (332,116)

50.14%

Other income

 98,494

 201,365

-51.09%

Share of profit from Associates

 6,735

 5,847

15.19%

Profit before tax

 5,917,153

 3,525,687

67.83%

Taxation

 (2,144,263)

 (1,066,436)

101.07%

Profit for the period

 3,772,890

 2,459,251

53.42%

Earnings per share – basic and diluted (Rupees)

 1.80

 1.17

53.85%

 

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Posted on: 2021-04-28T22:36:00+05:00

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