Will FATIMA’s EPS jump to Rs6.1? Here’s what may drive the growth
Fatima Fertilizer (FATIMA) is expected to post excellent financial results for the second quarter of 2025. The company is likely to earn a profit of PKR 12.8 billion, with earnings per share (EPS) of PKR 6.1, more than double last year’s earnings for the same period!
Here’s a breakdown of what’s behind this strong performance
Fertilizer sales are booming
FATIMA saw a major increase in product sales in 2QCY25:
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- Urea sales more than doubled to 177,000 tons, up from 83,000 tons last year.
- CAN (Calcium Ammonium Nitrate) and NP (Nitrophosphate) sales also went up by 57% and 27%, respectively.
- DAP sales surged over 3 times to 13,000 tons, compared to just 4,000 tons in 2QCY24.
This strong demand helped FATIMA’s total revenue reach PKR 68.8 billion, a huge jump from PKR 42.4 billion last year.
Better profit margins and lower costs
FATIMA also enjoyed better profitability:
- Gross margins (the money left after paying for production) increased by about 6 percentage points from last year.
- Prices of fertilizers were higher, helping boost overall profits.
- Finance costs (interest on loans) dropped by 50% compared to last quarter, thanks to lower debt.
- However, other income went down due to less cash in hand compared to previous periods.
Quick summary
| Metric | 2QCY25 | 2QCY24 | YoY Change | 1QCY25 | QoQ Change |
|---|---|---|---|---|---|
| Urea Sales | 177kt | 83kt | +112% | 213kt | -17% |
| DAP Sales | 13kt | 4kt | +225% | 7kt | +83% |
| Total Revenue | PKR 68.8bn | PKR 42.4bn | +62% | — | — |
| Net Profit (PAT) | PKR 12.8bn | PKR 5.2bn | +145% | PKR 8.4bn | +52% |
| EPS (Earnings/Share) | PKR 6.1 | PKR 2.5 | +145% | PKR 4.0 | +52% |
What this means?
Fatima Fertilizer is showing strong earnings growth, driven by higher sales across its product range and better prices. With reduced debt and strong demand for fertilizers, FATIMA appears to be in a solid position going into the second half of the year.
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Source: Insight Securities (Private) Limited
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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