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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