Shams ul Nisa

Agritech Limited’s net losses increased by 13.9% to Rs2.76 billion in the first nine months of the ongoing calendar year 2023 from Rs2.42 billion post-tax loss over the same period of 2022. However, the net loss margin dropped slightly to 19.85% in 9MCY23 from 20.17% in 9MCY22 due to a rise in sales. The company’s net sales during 9MCY23 rose to Rs13.9 billion from Rs12.01 billion in 9MCY22, posting a 15.8% increase marked by an increased demand for phosphates and urea. Agritech’s gross profit increased by 79% to Rs2.38 billion in 9MCY23 from Rs1.33 billion in the same period last year. As a result, the gross profit margin improved from 11.09% in 9MCY22 to 17.15% in 9MCY23.

The company managed to generate other income of Rs141.9 million in 9MCY23 against Rs49.34 million in 9MCY23, posting a significant jump of 187.60%. Similarly, the operating profit jumped 166.55% to Rs1.5 billion in 9MCY23 from Rs566 million in the same period last year. The company’s loss-before-tax expanded to Rs3.029 billion in 9MCY23 from Rs2.62 billion in 9MCY22, up 15.60%. The fertilizer maker continued to suffer loss per share, which clocked in at Rs7.03 in 9MCY23 compared to Rs6.17 reported in the same period last year.

Assets analysis

In September 2023, the company's total assets rose by 3.07% to Rs83.9 billion from Rs81.47 billion in December 2022 despite the net losses. In September 2023, the company's non-current assets decreased by 1.71%, but its current assets increased significantly by 42.05% over the comparable period. The non-current assets inched lower from Rs72.56 billion in December 2022 to Rs71.3 billion in September 2023. The current assets, however, jumped from Rs8.9 billion in December 2022 to Rs12.65 billion in September 2023.

Equity and liabilities analysis

The company's reserves and share capital as of September 2023 stood at Rs9.22 billion, down from Rs11.98 billion in December 2022, reflecting a 23.03% decrease. Non-current liabilities of the company decreased from Rs13.02 billion to Rs12.25 billion, posting a 5.89% decline. This shows that a portion of the company's long-term debt was settled. On the other hand, due to an increase in short-term commitments, the company's current liabilities increased by 10.68% to Rs62.49 billion in September 2023 from Rs56.46 billion in December 2022, reflecting more short-term obligations by the company. During the period under review, Agritech Limited's total equity and liabilities increased by 3.07% to Rs83.97 billion.

Ratios analysis

From 2019 to 2022, the company's performance was inconsistent. In 2020, the company reported a gross loss margin of 20.58%. However, in 2021 it recorded a gross profit ratio of 4.05%, which jumped to 12.27% in 2022. The 2019 recorded the highest gross profit margin of 12.58%. The company recorded net losses during this period, with the highest loss of 75.39% occurring in 2020 and the lowest of 5.36% in 2019. The net loss margin stood at 17.08% in 2022. While the earnings per share growth remained positive in 2019 and 2021, the company posted a massive loss of 559.64% in 2020 and 10.25% in 2022.

Credit: INP-WealthPk