FFC SlidesFauji fertilizer company vs Engro Fertilizer Company Project Powerpoint Slides

8/10/2019 FFC SlidesFauji fertilizer company vs Engro Fertilizer Company Project Powerpoint Slides

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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.

FFC SlidesFauji fertilizer company vs Engro Fertilizer Company Project Powerpoint Slides

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