Hifsa Raja

Agritech Limited (AGL) sales decreased 74.42% to Rs840 million in the first three months of calendar year 2023 (3MCY23) from Rs3.28 billion over the corresponding period of the previous year, reports WealthPK. Similarly, the company bore a gross loss of Rs551 million in 3MCY23 compared to a gross profit of Rs86.9 million in 3MCY22, posting a whopping 734.01% negative growth. The company’s operating loss increased by 458.5% to Rs700 million in 3MCY23 from Rs125 million in 3MCY22. The loss-before-taxation jumped 104.3% to Rs2.03 billion from Rs998 million in 3MCY22. The loss-after-taxation also jumped 106.7% to Rs1.91 billion in 3MCY23 from Rs925 million in 3MCY22.

AGL – CY22

In the calendar year 2022, AGL’s gross profit increased by 71.23% and net profit by 10.15% compared to CY21. AGL posted gross profit of Rs17.29 billion and post-tax profit of Rs2.9 billion in CY22.

Industry comparison

Fauji Fertilizer Bin Qasim Limited, Dawood Hercules Corporation Limited, Fatima Fertilizer Company Limited and Nimir Resins Limited are considered rivals of Agritech Limited in terms of market capitalisation. Dawood Hercules Corporation Limited has the largest market capitalisation of Rs49.2 billion followed by Fatima Fertilizer’s Rs28.5 billion. The market value of Agritech Limited is Rs1.8 billion.

Associated companies have the major shareholding of the company at 46.02%. In the general public segment, locals have 20.39% shareholding. Banks, development financial institutions and non-banking financial institutions have 18.92% of the total shareholding.

Stock analysis

The stock of Agritech has been volatile in the past few months, witnessing both significant increases and decreases. This can be attributed to various factors such as changes in market demand, supply and demand dynamics and the overall performance of the company.

Import and export situation

During the past three years, gas supply to the company has improved with regular imports of Liquefied Natural Gas (LNG) by the government. Consistent LNG imports improved RLNG flow to Sui Northern Gas Pipelines Limited (SNGPL), benefitting consumers, including the fertilizer sector. RLNG supplies at subsidised rate were restored to the company’s urea plant in Nov 2021.

Company profile 

Agritech was incorporated in Pakistan on December 15, 1959 as an unlisted public limited company under the now repealed Companies Act, 1913 (Companies Act, 2017). The principal business of the company is the production and sale of urea and granulated single super phosphate fertiliser.

Credit: Independent News Pakistan-WealthPk