EFERT is expected to post a growth of 14% YoY in 9MCY20

Engro Fertilizer Ltd. (EFERT) is scheduled to announce the financial result for the period 9MCY21 on 13th Oct’21, where we expect the company to post a Profit after Tax of PKR 13,091mn (EPS: PKR 9.79) against PKR 11,491mn (EPS: PKR 8.61), depicting a growth of 14% YoY.

On quarterly basis, the bottom-line during 3QCY21 is expected to be PKR 2,582mn (EPS: PKR 1.93), down by a massive 63% YoY. This fall is owed to plunge in urea and DAP offtake by 9% and 46% YoY, respectively. Whereas, urea and DAP prices climbed up by 7% and 72% YoY, respectively.

Gross margins are expected to be 22% during 3QCY21 compared to 29% in 3QCY20 given company is accruing industrial feed gas rate at EnVen plant since concessionary gas period has ended on 30th Jun’21. Furthermore, financial charges are anticipated to plummet by 38% YoY to PKR 404mn owed to reduction in borrowings.

Other income is forecasted to drop by 44% YoY to PKR 280mn, on the back of decline in income from cash and cash balances. Alongside the result, company is expected announce a cash dividend of PKR 1.00/share (PKR 10.00/share in 9MCY21).

Courtesy – AHL Research

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