Ayesha Mudassar

Pakistan's fertilizer sector collectively reported a 20% increase in gross profit, and a 38% growth in net profit during the third quarter (July-September) of the ongoing calendar year 2024 compared to the corresponding period of 2023, reports WealthPK.

In 3QCY24, the listed fertilizer firms earned a total gross profit of Rs76.9 billion and a net profit of Rs41.5 billion, yielding gross profit and net profit margins of 36% and 20%, respectively.

According to the results compiled by WealthPK, the fertilizer sector's net sales declined to Rs212.3 billion in 3QCY24 from Rs239.2 billion in the same period of CY23, representing an 11% decrease. The fertilizer sector includes major companies such as Engro Fertilizers Limited (EFERT), Fauji Fertilizers Company Limited (FFC), Fatima Fertilizer Company Limited (FATIMA), and Fauji Fertilizer Bin Qasim Limited (FFBL). Among these, FFC leads the sector with a market capitalisation of Rs414.4 billion, followed by EFERT with a market cap of Rs278.7 billion. FATIMA and FFBL rank third and fourth with market caps of Rs147.4 billion and Rs97.4 billion, respectively.

Fertilizer companies- 3QCY24

In 3QCY24, FATIMA led its peers in terms of sales, while FFC recorded the highest net profit, followed by FATIMA, FFBL, and EFERT. In terms of earnings per share (EPS), the sequence changed from FFC to EFERT and FFBL. FATIMA stood at fourth position. FFC reported net sales of Rs50.3 billion and a gross profit of Rs26.09 billion. The company's net profit for the quarter was Rs16.4 billion, yielding gross profit and net profit margins of 52% and 33%, respectively. FFC's earnings per share for 3QCY24 stood at Rs12.95.

In 3QCY24, Engro Fertilizers posted net sales of Rs42.5 billion, with a gross profit of Rs15.6 billion and a net profit of Rs7.6 billion. The gross profit and net profit margins for the quarter were 37% and 18%, respectively. FATIMA achieved a gross profit of Rs21.03 billion and a net profit of Rs9.4 billion on net sales of Rs61.7 billion, resulting in gross and net profit margins of 34% and 15%, respectively. The company reported earnings per share of Rs4.48 for the quarter. FFBL recorded gross and net profits of Rs14.1 billion and Rs8 billion, respectively, during 3QCY24. The company posted earnings per share of Rs6.20 for the period.

Credit: INP-WealthPk