During 9MCY23, net sales of the company clocked in at PKR161bn, up by 61% YoY, compared to PKR100bn in SPLY. Similarly, PAT of the company reported at PKR12.9bn (EPS: PKR6.19/sh), marking a significant upside of 20% YoY compared to PKR10.8bn (EPS: PKR5.15/sh) in SPLY. While, on a standalone basis, the company achieved the profit after tax of PKR12.65bn (EPS: PKR6.02/sh) against the PAT of PKR10.25bn (EPS: PKR4.88/sh) in SPLY.
The fertilizer business recorded a significant surge in sales revenue, reaching PKR159.46bn compared to PKR99.67bn in the corresponding period of the previous year, primarily attributed to the growth in NP volumes.
The company experienced a 15% YoY decrease in production volumes, primarily due to scheduled plant turnarounds and unavailability of gas at the Sheikhupura plant in the first quarter.
The company maintained its overall market share, with an 8% increase in the phosphate market, contributing to the overall stability.
Input costs rose significantly due to inflation, higher fuel costs, sharp rupee depreciation, and increased interest rates, impacting the overall profitability.
The imposition of super tax on profits resulted in an effective tax rate of 58%, affecting the Profit After Tax, which was registered at PKR12.65bn compared to PKR10.26bn in the same period last year.
The company’s consolidated financial results include the performance of its wholly-owned subsidiaries, namely Fatima Packaging Limited, Fatima Cement Limited, and Fatima fertilizer Limited.
Moreover, the Board of Directors authorized strategic investments in mineral mining in Baluchistan and acquiring shareholding in National Resources (Pvt.) Limited (NRL), exemplifying a calculated and forwardlooking approach to diversification.
The company is procuring gas for Fatima at a rate of PKR 1,239 /MMBTU. As for PAK Arab, 30% of the gas is sourced under the fertilizer policy, while the remaining 70% is acquired through the PP12 arrangement.
The absence of subsidized RLNG availability posed a notable obstacle. Due to unavailability of subsidized RLNG, company has to purchase gas at the full price; directly from Mari.
Going-forward, despite prevalent challenges, the company is well-positioned for steady growth in 2023. The assurance stems from robust strategies in place, including continuous gas supply to its plants, enabling operations at maximum capacity. This strategic positioning underscores the company’s commitment to ensuring product availability and contributing significantly to the agricultural sector.
Important Disclosures
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