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)
Cost of sales
Other operating expenses
Share of profit from Associates
Profit before tax
Profit for the period
Earnings per share – basic and diluted (Rupees)
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