We expect FATIMA to post an EPS of PkR2.19/sh against PkR2.06/sh in 1QCY23 and profit of PkR0.08/sh in 2QCY22. Revenue is projected to clock in at PkR52.8bn (↑57.5%/59.1% QoQ/YoY owing to higher prices and sales from Fatimafert during the year, due to provision of RLNG. Gross margins may remain under pressure (estimate: 35.0% vs. 42.2% last quarter) due to exchange rate volatility translating to a higher cost of imports and a higher gas cost. Finance cost is expected to remain high due to high interest rates. Effective tax rate is estimated at 56.6% vs. 41.0% due to the impact of a higher super tax, plus a retrospective effect on FY23 earnings.

Courtesy- AKD Research