{"id":6135,"date":"2024-08-31T04:08:43","date_gmt":"2024-08-30T23:08:43","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=6135"},"modified":"2024-11-23T18:57:06","modified_gmt":"2024-11-23T13:57:06","slug":"how-well-did-fatima-fertiliser-perform-in-2qcy24","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/how-well-did-fatima-fertiliser-perform-in-2qcy24\/","title":{"rendered":"How well did Fatima Fertiliser perform in 2QCY24?"},"content":{"rendered":"\n

Fatima’s 2QCY24 financial performance reflects a challenging quarter, marked by a significant decline<\/strong> in profitability and revenue. <\/p>\n\n\n\n

Despite these challenges, the company’s gross margins show some resilience, while various expenses and income streams have fluctuated considerably.<\/p>\n\n\n\n

Down the stream<\/h2>\n\n\n\n

Fatima reported a consolidated profit after tax of PKR 5.19 billion<\/strong> for 2QCY24, translating to an EPS of PKR 2.47<\/strong>. <\/p>\n\n\n\n

This marks a substantial 38% YoY<\/strong> decline from PKR 8.40 billion (EPS: PKR 4.00) reported in the same period last year. <\/p>\n\n\n\n

The reduction in profitability was primarily driven by a 10% YoY<\/strong> drop in net sales, which clocked in at PKR 42.3 billion compared to PKR 47.0 billion in 2QCY23. <\/p>\n\n\n\n

The revenue decline was even more pronounced on a QoQ basis, with a 36% <\/strong>decrease from the previous quarter’s PKR 66.0 billion.<\/p>\n\n\n\n

The drop in revenue can be attributed to lower offtakes<\/strong>, which impacted the company’s top line. <\/p>\n\n\n\n

However, despite the revenue decline, Fatima’s gross margins improved by approximately 7 ppts YoY, reaching 38%<\/strong> in 2QCY24. <\/p>\n\n\n\n

This improvement in margins was primarily due to higher product prices. <\/p>\n\n\n\n

On a QoQ basis, however, gross margins decreased by 4 ppts, likely due to lower fixed cost absorption<\/strong> as a result of reduced sales volumes.<\/p>\n\n\n\n

Expense and income trends<\/h2>\n\n\n\n

Fatima’s operating expenses showed mixed trends during the quarter. <\/p>\n\n\n\n

Selling and distribution expenses nearly doubled YoY, rising by 99%<\/strong> to PKR 3.14 billion.<\/p>\n\n\n\n

This significant increase indicates higher marketing and distribution costs. <\/p>\n\n\n\n

Meanwhile, administrative expenses increased by 21% YoY<\/strong> to PKR 2.47 billion. <\/p>\n\n\n\n

However, on a QoQ basis, both selling and distribution expenses and administrative expenses saw a decrease, with the latter dropping by 28%<\/strong>.<\/p>\n\n\n\n

Other income, which includes earnings from investments and other non-core activities, showed a remarkable 230%<\/strong> YoY increase, reaching PKR 2.1 billion. <\/p>\n\n\n\n

This surge helped cushion the blow from the lower core earnings. <\/p>\n\n\n\n

Nonetheless, other income experienced an 8% QoQ<\/strong> decline, possibly due to a decrease in cash and short-term investments.<\/p>\n\n\n\n

Financial charges remained stable on a QoQ basis at PKR 810 million<\/strong>, showing a muted impact from interest rates during the quarter. <\/p>\n\n\n\n

However, the effective tax rate remained high at 49.2%<\/strong>, only slightly lower than the previous quarter’s 49.5%.<\/p>\n\n\n\n

Source: Insight Securities<\/p>\n","protected":false},"excerpt":{"rendered":"

Fatima’s 2QCY24 financial performance reflects a challenging quarter, marked by a significant decline in profitability and revenue. <\/p>\n","protected":false},"author":4890,"featured_media":6543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[138,2],"tags":[171],"class_list":["post-6135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","category-psx-blog","tag-fatima"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/FATIMA-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/FATIMA-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/FATIMA-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/08\/FATIMA-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/6135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/4890"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=6135"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/6135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6543"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=6135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=6135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=6135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}