You are currently viewing EFERT announced a cash dividend of PKR 3.00/share (PKR 11.00/share in 1HCY24).

EFERT announced a cash dividend of PKR 3.00/share (PKR 11.00/share in 1HCY24).

Engro Fertilizers Limited (EFERT) today unveiled the financial result for 1HCY24, posting a consolidated profit after Tax (PAT) of PKR 9,426mn (EPS: PKR 7.06) against PKR 5,464mn (EPS: PKR 4.09) in 1HCY23, up by 73% YoY. Meanwhile, consolidated earnings 2QCY24 clocked in at PKR 1,666mn (EPS: PKR 1.25), augmenting by 57% YoY. Alongside the result, the EFERT announced a cash dividend of PKR 3.00/share (PKR 11.00/share in 1HCY24).

Result Highlights       

  • Net sales in 1HCY24 clocked in at PKR 113,204mn, up by 37% YoY, which is on account of a 62% and 19% YoY hike in urea and DAP price tagged with 54% YoY jump in DAP offtake. On a quarterly basis, the topline during 2QCY24 witnessed an uptick of 3% YoY, settling at PKR 39,421mn, which is due to a 59% and 15% YoY higher urea and DAP prices, respectively, coupled with a 16% YoY jump in DAP sales. Meanwhile, urea offtake contracted by 36% YoY due to 58 days of maintenance at the EnVen plant.
  • Gross margins in 1HCY24 arrived at 21.49% vis-à-vis 26.95% in 1HCY23. Whereas, gross margins in 2QCY24 arrived at 18.10% (down by 1,167bps YoY) owed to lower urea offtake.
  • Other income swelled up by 75% YoY settling at PKR 2,032mn in 1HCY24 given higher income from cash and cash balances. Meanwhile, in 2QCY24, the other income came out to be PKR 745mn, up by 67% YoY due to the aforementioned reason.
  • Finance cost climbed up by 22% YoY, clocking in at PKR 1,386mn during 1HCY24 owed to higher interest rates. Whereas, the finance cost in 2QCY24 swelled up by 74% YoY, reaching PKR 1,225mn.   
  • The company booked effective taxation at 35% in 2QCY24 vis-à-vis 85% in 2QCY23. To recall, during 2QCY23 an additional 6% super tax was levied on the profit before tax of CY22 and 1HCY23, respectively.

Courtesy – AHL Research

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