FATIMA_2QCY22 Result Review, (AKD Off the Analyst's Desk Aug 25, 2022)
AKD, Off the Analyst's Desk
FATIMA: 2QCY22 Result Review
Fatima Fertilizer Company (FATIMA) announced its 1HCY22 result, where it posted con-solidated PAT of PkR167mn (EPS: PkR0.08) vs PAT of PkR5.54bn (EPS: PkR2.64). This takes cumulative 1HCY22 PAT to PkR5.8bn (EPS: PkR2.79) vs PAT of PkR9.3bn (EPS: PkR4.44) in same period last year. The decline in earnings is primarily attributable to higher than expected taxation charges.
Revenue for the quarter clocked in at PkR33bn, which is below our estimates possibly due to lower realized prices. Revenue recorded an increase of 29%/14% YoY/QoQ, mainly attributable to higher prices as compared to SPLY.
Gross profit margin clocked in at ~48.4% vs 45.4% in SPLY. The increase in margins is possibly due to disbursement of subsidy. We await detailed accounts for further clari-ty.
Finance cost increase by 13%YoY, mainly due to higher borrowing rates.
Taxation charges increased by 248%/307% YoY/QoQ, attributable to imposition of super tax. The deviation in taxation amount is attributable to imposition of prospec-tive change in tax rate, resulting in tax expense on deferred tax liability.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.