FATIMA - 1QCY23 Result Review, (AKD Off the Analyst's Desk Apr 27, 2023)
Fatima Fertilizer Company Limited (FATIMA) announced its 1QCY23 result today, where the company posted NPAT of PkR4.3bn (EPS: PkR2.06), remaining flat on a QoQ basis while decreasing by 24% on the yearly basis. The result is above our expectations on the back of a substantial improvement in gross margins for the company.
- Revenue for the quarter clocked in at PkR33.5bn, a decrease of 37%QoQ owing to lower offtakes in the quarter. On the flipside, Revenue has increased by 15% on the yearly basis due to higher prices for the company’s offerings.
- Gross margins for the company have posted at 42.2% for the quarter, a substantial increase when compared to the 20.2% posted in the previous quarter, while remaining flat on the yearly basis. To recall, gross margins had decreased in 4QCY22 due to the Fatima Fert plant, which is run on RLNG.
- Finance costs for the company have clocked in at PkR1.0bn, remaining flat on the quarterly basis, while posting an increase of 1.4x YoY as high interest rates along with higher borrowings have dented profitability.
- Other Income for the company has clocked in below expectations at PkR800mn, a decrease of 19%QoQ while posting an increase of 135%YoY.
- Taxation of the quarter has posted an ETR of 41% for the quarter, higher than expectations and clocking in at PkR3.0bn.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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