Multan: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its strong ratings for Fatima Fertilizer Company Limited, citing the company's robust association with prominent business groups and its significant market share in the fertilizer industry. This affirmation reflects the company’s strategic position within the non-cyclical fertilizer sector, which is gaining importance due to the global emphasis on food security.

According to The Pakistan Credit Rating Agency Limited announcement issued on 24 July 2024, the ratings benefit from Fatima Fertilizer's ties to the Fatima Group and Arif Habib Group, which have established diverse portfolios across several major industries. The company's effective governance and skilled management have also contributed to its favorable ratings. In 2023, the domestic fertilizer market demonstrated stability with urea demand reaching approximately 6.6 million tons, supported by strong farm economics and significant price advantages over imports.

Fatima Fertilizer leads the market in NP and CAN fertilizers, holding a 42% share. The company aims to elevate its ‘Sarsabz’ brand as the premium choice in the market, aligning with its initiative for a greener Pakistan. This past year, Fatima saw a 47% increase in sales revenue due to successful market penetration strategies and enhanced product availability. The company's financial health is underpinned by a low leveraged capital structure, strong liquidity, and effective working capital management, ensuring continued profitability and operational efficiency.

PACRA’s ratings also underscore the potential impact of any significant shifts in profit margins or financial practices on the company's ratings. Continued adherence to strong financial discipline is expected to sustain these ratings in the future.