AGRITECH LIMITED Interim Financial Report
for the quarter ended
March 31, 2024
(Un-audited)
conquering challenges
RISING STRONG
Contents
Company Information | 02 |
Directors' Review Report | 03 |
Condensed Interim Statement of Financial Position | 07 |
Condensed Interim Statement of Prot or Loss | 08 |
Condensed Interim Statement of Comprehensive Income | 09 |
Condensed Interim Statement of Changes in Equity | 10 |
Condensed Interim Statement of Cash Flows | 11 |
Notes to the Condensed Interim Financial Statements | 12 |
02 | Agritech Limited
Company Information
Board of Directors | |
Mr. Shahid Iqbal Choudhri | (Chairman) |
Mr. Hassan Raza
Mr. Osman Malik
Mr. Asim Murtaza Khan (Resigned on 18-04-2024)
Mr. Asim Jilani
Mr. Ghazzanfar Ahsan
Ms. Sarwat Salahuddin Khan
Mr. Hasan Ahmed (Appointed on 26-04-2024)
Mr. Muhammad Faisal Muzammil | (Chief Execuve Officer) |
Audit Commiee | |
Mr. Hasan Ahmed | (Chairman) |
Mr. Osman Malik | |
Mr. Hassan Raza | |
Mr. Asim Jilani | |
Mr. Ghazzanfar Ahsan | |
HR & Remuneraon Commiee | |
Ms. Sarwat Salahuddin Khan | (Chairperson) |
Mr. Asim Jilani | |
Mr. Osman Malik | |
Mr. Ghazzanfar Ahsan | |
Chief Financial Officer | |
Mr. Moeez ur Rehman |
Company Secretary & Head of Legal
Ms. Asma Irfan
Management Team
Mr. Muhammad Faisal Muzammil
Chief Execuve Officer
Mr. Moeez Ur Rehman
Chief Financial Officer
Ms. Asma Irfan
Company Secretary and Head of Legal
Mr. Rehan Munir
Head of Manufacturing - Urea Plant
Mr. Muhammad Yahya
GM Manufacturing - SSP Plant
Mr. Muhammad Dilpazeer
Head of HR and Sustainability
Mr. Tanweer Raza
Head of Sales and Markeng
Mr. Muhammad Sajjad Anwar
Head of Informaon Technology
Mr. Muhammad Bashir
Commercial Manager
Head of Internal Audit
Mr. Sohaib Roomy Salih
Head of Risk and Control
Syed Taneem Haider
Legal Advisor
Mr. Wasif Majeed
Shares Registrar
Corplink (Private) Limited
Auditors
Grant Thornton Anjum Rahman
Chartered Accountants
Lahore.
Bankers
Naonal Bank of Pakistan
Faysal Bank Limited
Standard Chartered Bank (Pakistan) Limited Albaraka Bank Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Bank Makramah Limited (Formerly Summit Bank Limited)
Silk Bank Limited
Allied Bank Limited
Bank Alfalah Limited
The Bank of Punjab
Bank Islami Pakistan Limited
Askari Bank Limited
Soneri Bank Limited
Ci Bank N.A. Pakistan
Meezan Bank Limited
United Bank Limited
JS Bank Limited
Habib Bank Limited
MCB Bank Limited
Registered Office
2nd Floor, Asia Centre, 8-Babar Block, New Garden Town, Lahore.
Ph: +92 (0) 42 35860341-44
Fax: +92 (0) 42 35860339-40
Email: corporate@agritech.com.pk
Project Locaons
Unit-I
Urea Plant
Iskanderabad, District Mianwali.
Ph: +92 (0) 459 392346-49
Unit-II
GSSP Plant
Haar Road, Haripur.
Ph: +92 (0) 995 353544 -353641
Interim Financial Report | 03
Directors' Review Report
The Directors hereby present their review report along with the unaudited condensed interim financial statements for the three months ended March 31, 2024.
Principal AcviŸes
The main business of the Company is the manufacturing and markeng of ferlizers. The Company owns and operates the country's one of the newest and most efficient urea manufacturing plant at Mianwali, Punjab Province. The Company also operates the manufacturing facility of GSSP (Granular Single Super Phosphate) at Haripur Hazara, Khyber Pakhtunkhwa Province. The Company markets its ferlizers from these plants under one of the most trusted brand name "TARA" in the ferlizer industry.
First Quarter in Review
Financial Results
Rs. in million
Quarter ended
March 31, 2024
Quarter ended March 31, 2023
Sales - Net
9,241
841
Operang Profit / (Loss)
1,603
(700)
Finance cost
1,751
1,340
(Loss) before Tax
(148)
(2,040)
(Loss) aer Tax
(173)
(1,913)
(Loss) per share (Rs.) | (0.44) |
Overview of Ferlizer Industry:
(4.87)
During the 1st quarter of 2024, Urea producon in Pakistan increased by 20% to 1,725 k tons (1,436 k tons: 2023), primarily due to uninterrupted availability of gas to the plants on SNGPL network. Urea o akes increased by a healthy 13% for the period under review to 1,827 k tons (1,623 k tons: 2023) on back of higher Wheat Economics, increased Wheat sowing area, higher Urea avails (from both - domesc manufacturing & mely imports) and connued channel interest.
The Company managed to produce 98 k tons Urea (6 k tons: 2023) against installed capacity of 108 k tons for the period. The
Company sold 98 k tons Tara Urea during the period under review (5 k tons: 2023) and 13.56 k tons of imported urea
allocated by NFML (0 k tons : 2023).
OKakes of Phosphate during the period under review registered an increase of 12% to 177 k tons of P2O5 Nutrients vs 158 k tons in the same period of last year. Strong o}akes are aributed to the recovery of farmer demand as well as channel interest on back of lower phosphate inventories. DAP prices in the internaonal market remained stable during the period under review staying at around US$ 625 per ton CFR KHI for most of the period before declining in the last fortnight of the quarter to US$ 595 per ton CFR KHI. The Company being a major SSP player, produced 19 k tons (2023: 16 k tons) SSP during the period under review and sold 15 k tons (2023: 10 k tons) during the period.
Future Outlook
The future demand outlook for Urea, based on the posive outlook of farm economics for the Kharif crops parcularly Rice crop due to widespread adopon of high yielding Hybrid variees requiring higher Nitrogen need and second consecuve year for the Coon sowing recovery, looks promising. Urea demand in coming season is likely to outstrip the available Urea capacity from all plants in the country including the urea plant of the company on SNGPL Network in Punjab, and the demand supply gap is likely to persist for which addional supplies through increased gas supplies to plant operang at lower than capacity level on SSGC Network or imports is necessitated.
Phosphate demand recovery witnessed during 2023 is likely to connue during 2024 as well as and the overall phosphate demand to further increase on year-on-year basis. The upcoming Kharif season is likely to set the tone for the phosphate use recovery by the farmers based on the posive Rice and Coon outlooks during the season. Global Phosphate prices indicate the bearish trend in the short term and its impact on local phosphate product prices is likely to be reflecve in the form of
04 | Agritech Limited
reducon during the season, however, the reducon of local prices is dependent upon any possible rupee devaluaon in the country. The company is expected to demonstrate further improved producon and sales of SSP upon the recovery of the overall Phosphate demand.
Capital Restructuring & Ligaons with Banks
Subsequent to the disbursement of Rs. 1,649 million Cash Flow available for Debt Servicing ('CFADs') and approval of Board of Directors, the Company is in the process of issuance of related instruments under the sanconed Scheme of Arrangement (the 'Scheme'). The Company is confident that recovery cases filed by the banks can be successfully defended in the relevant courts aer the complete implementaon of Scheme.
Other Highlights
- Mr. Asim Murtaza Khan - Independent Director has resigned from the Board on 18th April 2024. Mr. Hasan Ahmed has joined the Board as Independent Director on 26th April 2024 to fill the casual vacancy.
- The Company is in the process of conversion of 10.883 million preference shares issued to Bank Alfalah Limited into ordinary shares in response to a noce received from the bank for the said conversion. This also includes filing of respec‰ve forms with SECP and taking into books of accounts the effect of conversion.
- The Company has also disclosed in note 4 of its interim financial statements the requisite disclosure of ordinary shares held by related pares including Maple Leaf Cement Factory Limited and Maple Leaf Capital Limited.
Acknowledgement
The Board of Directors extends its sincere gratude to our valued customers, financial partners, and dedicated employees. Your connued trust, support, and hard work are the foundaon of our growth and success.
On behalf of the Board
Lahore | Muhammad Faisal Muzammil | HasanMuhammadAhmed Faisal Muzammil |
Date : April 30, 2024 | Chief Execuve Officer | Director |
Interim Financial Report | 05 | |
2024 | |
841 | 9,241 |
(700) | 1,603 |
1,340 | 1,751 |
(2,040) | (148) |
(1,913) | (173) |
(4.87) | (0.44) |
06 | Agritech Limited |
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Agritech Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 11:13:00 UTC.
