By: BMA Capital Management Limited
Fatima Fertilizer Company Limited (FATIMA) reported earnings of PKR6.8bn (EPS: PKR3.24) in 1HCY15, an increase of 1.0x YoY. For 2QCY15, the company posted a bottom-line of PKR4.4bn (EPS: PKR2.1), recording a growth of 1.5x YoY and 84% on a QoQ basis.
The result surprised significantly on the higher side due to i) a deferred tax reversal recorded in 2QCY15 of PKR1.2bn and ii) 5pps growth in margins on the back of expanding NP margins.
Sales revenue of the company clocked in at PKR9.6bn for 2QCY15, representing a growth of 5%QoQ and 17%YoY due to better offtake levels.
The company’s interest costs fell by 42%YoY and 8%YoY to PKR607mn during the quarter given continued de-leveraging and easing interest rates.