Engro Fertilizer Limited (EFERT) is scheduled to announce the financial result for 1QCY21 on 19th Apr’21, where we expect the company to post a profit after tax of PKR 5,433mn (EPS: PKR 4.07) vis-à-vis PKR 571mn (EPS: PKR 0.43) in 1QCY20, portraying a massive jump of 9.5x YoY. Topline is anticipated to witness a hefty surge of 138% YoY, clocking-in at PKR 25,683mn during 1QCY21 amid huge growth in Urea and DAP offtake by 3.5x and 1.8x YoY, respectively followed by ascend in DAP prices by 27% YoY.

Gross margins are expected to settle at 44% during 1QCY21 versus 34% in SPLY given significant growth in Urea offtake.

Furthermore, financial charges are forecast to decline by 62% YoY to PKR 466mn given lower interest rates. Other income is projected to climb up by 111% YoY to PKR 552mn, owed to higher income from financial assets.