Engro Fertilizers profit increases 24% to Rs4.8b

Engro Fertilizers‘ profit increased 23.8 percent to Rs4.8 billion in the quarter ended June 30, 2021, thanks to an increase in other revenue and a decrease in financing costs.

The fertilizer manufacturer reported a profit of Rs3.9 billion for the same quarter last year, according to a notice sent to the Pakistan Stock Exchange on Thursday.

As a result, the company’s profits per share (EPS) increased from Rs2.91 in April-June 2020 to Rs3.6 in the current quarter.

In addition to the results, the firm declared a cash dividend of Rs4 per share.

The enterprise’s net sales were Rs25.9 billion in the April-June 2021 quarter, 13.35 percent lower than the Rs29.9 billion reported in the same period the previous year.

“Net sales decreased during the quarter as urea and di-ammonium phosphate (DAP) offtake decreased by 22% and 48%, respectively, year on year,” said Arif Habib Limited analyst Iqbal Jawaid.

He also stated that gross margins increased by 538 basis points year on year in the second quarter of the calendar year 2021 due to higher urea pricing.

The fertilizer manufacturer’s selling and distribution expenditures decreased 14.1 percent, from Rs2.4 billion in April-June 2020 to Rs2 billion in April-June 2021.

Administrative costs were Rs494.7 million in the current quarter, up 36.7 percent from Rs361.8 million in the previous year’s equivalent period.

In the second quarter of 2021, the company’s other income more than quadrupled to Rs533.6 million. At the same time the previous year, the income under this heading was Rs243.5 million.

“Other income increased by 119 percent year on year due to higher revenue from cash and cash balances,” the analyst reported.

The share price of Engro Fertilizers closed at Rs 75.23 on Thursday, up Rs0.86, with 3.26 million shares changing hands on the Pakistan Stock Exchange.

Published in Lahore Herald #EngroFertilizers, #EngroFertilizersProfit Published in Lahore Herald

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Lahore Herald is a Pakistani internet media company based in Lahore,it began operations as a social news and entertainment company with a focus on digital media

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Lahore Herald

Lahore Herald

Lahore Herald is a Pakistani internet media company based in Lahore,it began operations as a social news and entertainment company with a focus on digital media

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