Corporate results: Fatima Fertilizer records 49% profit rise

Earnings stand at Rs2.43b in first quarter compared to Rs1.63b.

KARACHI: Profits of Fatima Fertilizer shot up almost 50% as the company saw an increase in urea demand along with a decrease in financial cost as a result of lower interest rates in the first quarter of 2015.

The company, which is part of one of the leading conglomerates of Pakistan, Arif Habib Corporation, posted a net profit of Rs2.43 billion in the quarter ended March 2015, a significant increase of 49% compared to Rs1.63 billion in the same period of previous year.

Earnings per share (EPS) jumped to Rs1.16 in the quarter compared to Rs0.78 in the same period of previous year.



However, on a quarter-on-quarter basis, the first-quarter profit of Rs2.43 billion dropped 14% compared to earnings of Rs2.82 billion the company posted in the fourth quarter of calendar year 2014.

According to analysts, the key highlights of the results include a 25% year-on-year uptick in sales due to a 50% rise in urea off-take and a 57% increase to Rs473 million in administrative expenses due to the expanding dealer and distribution network.

Apart from these, a lower interest rate environment aided the profit with a decrease of 32% in the financial cost.

Published in The Express Tribune, May 1^st,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.