Post on 02-Jun-2018
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Economy a system consist of production, trade, and
consumption
Pakistan economy combination of agriculture andindustry
Economy suffered due to political environment, natural
disaster, and terrorism
Independent country in many food products like rice
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Pakistans fertilizer industry has performed and
progressed from last few years.
Fertilizer industry is boosted in Pakistan due to the
self-reliance in meeting the urea demand Pakistan is the worldsseventh largest country in the
production of urea
The return on equity of fertilizer industry is 45.58
percent from last ten years
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FFC registered in 1978
a joint venture between Haldor Topsoe A/S of Denmark
and Fuji Foundation
FFC is the biggest fertilizer company in a Pakistan with60 percent market share
In the production of Urea
FFC share is traded at 113.31 PRs. In KSE
It won 15 award
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SWOT analysis is a tool which identifies the strength,
weaknesses, opportunities, and threats of an organization.
SWOT is a basic model that evaluates what an
organization can and cannot do as well as its possible
opportunities and threats
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Strengths
Solid financial position
Competent and Committed human resource
Well established distribution networkWeaknesses
Narrow Product line
Fixed customer base
Unavoidable reliance on depleting natural resources
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Opportunities
Less potential for new entrants in the industry
Opportunity to export fertilizer
Low customer bargain powerThreats
Depleting natural gas reserves
Availability of imported fertilizer at subsidized rates
Deteriorating local currency against US $
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PESTLE analysis, which is also known as PEST
analysis, it is a concept of marketing principle. PEST
analysis is a situational analysis in which political,
legal, economic factors, social/cultural factors, and
technological factors effects are studied on the
organizationslong term decisions and plans.
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Political Factors
Political situation of country is not satisfactory
Pakistan has no political stability and government rapidly
change
Taxation rate is change every year which cause decrease in the
profit of the company
Social Factors
The change in the lifestyle and needs in different
demographics also affect the demand of the customers
Government discourages the operation of industries within the
cities due to improper handling of wastages
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Economic Factors
Rapid change in interest rate also effects the investment
Economic factors affect the purchasing power of the
customer and companyscost of capitalTechnological Factors
Fertilizer sector there is a need of technological
expansion.
High technology is the elementary requisite ofFERTILIZER industry
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Sales Growth (%) ENGRO FFC
2013 2013 2012 2011
63.7 0.21 34.59 23.06
Liquidity Analysis ENGRO FFC
2013 2013 2012 2011
Current Ratio (Times) 0.36 0.77 1.14 1.04
Quick Ratio (Times) 0.34 0.66 1.01 0.93
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Profitability Analysis ENGRO FFC
2013 2013 2012 2011
GP Margin (%) 44.13 46.36 48.47 62.20
NP Margin (%) 10.97 27.03 28.07 40.73
ROCE (%) 17.06 68.61 70.38 88.60
EPS (PRs.) 4.66 15.83 16.40 17.68
ROE (%) 26.90 80.05 80.96 99.17
ROA (%) 38.46 29.68 34.38 40.05
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Efficiency Analysis ENGRO FFC
2013 2013 2012 2011
Debtors Turnover (Times) 275.69 34.55 40.20 248.18
Debtor Collection Period (Days) 1 11 9 1
Inventory Turnover (Times) 18.25 188.00 151.68 162.43
Creditor Turnover (Times) 105.52 144.48 60.99 33.45
Creditor Payable Period (Days) 3 3 6 11
Total Assets Turnover (Times) 0.63 1.10 1.23 0.99
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Investor's Analysis ENGRO FFC
2013 2013 2012 2011
Price/Earnings Ratio (Times) 4.66 7.07 7.14 8.46
Dividend Payout Ratio (%) 46.77 71.72 64.04 55.62
Dividend Yield (%) 7.45 11.35 10.50 14.75
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FFC is a very good opportunity for the investors. Management of FFC is
implementing very effective business polices and strategies for the improving
the performance of company. So we can conclude that FFC is performing
well as compared to others in the industry according to its management andfinancial prospectus
SWOT analysis we conclude that company has more strength than other
companies and also have many opportunities to improve yours production
and increase performance. Also FFC is able to overcome the weaknesses and
handle the threads to company effectively and efficiently.