Fatima Fertilizer (FATIMA) posted net earnings of Rs 8.02 billion (EPS Rs 3.82) for the year ended 2013 as against Rs 6.1 billion (EPS Rs 2.86) in 2012, up almost 31.3 percent YoY. According to Topline Securities, the result was also accompanied with a cash dividend of Rs 2.5 per share. During the period, FATIMA earned revenue of Rs 33.5 billion as against Rs 29.5 billion in the same period last year, up 13.5 percent YoY.
The increase in sales revenue was attributed to the rising trend of prices in fertilisers products ie Urea, CAN & NP in 2013 along with improvement in their volumetric growth. Furthermore, volumetric growth can be attributed to decline in sales of 'Pak Arab Fertilizer' on account of unavailability of gas to it from SNGPL network. Although, the company's gross profitability rose by 14.6 percent YoY to Rs 19.8 billion but its gross margins improved by mere 57bps in 2013.
During 2013, company's finance cost declined massively by 27.8 percent YoY from Rs 5.8 billion to Rs 4.2 billion due relatively lower interest rates in 2013 compared to 2012. On the other hand, expenses rose significantly by 36.6%YoY from Rs 2.4bn to Rs 3.3 billion.
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