Engro Fertilizer Limited (EFERT) is expected to announce the financial result for the period CY20, where experts expect the company to post a bottom-line of PKR 16,455mn (EPS: PKR 12.32) down by 2% YoY. On a quarterly basis, the analyst expects 4QCY20 earnings to clock in at PKR 4,965mn (EPS: PKR 3.72), down by 22% YoY.

According to AHL Research, Net Sales are anticipated to descend by 43% YoY, settling at PKR 24,772mn during 4QCY20 due to lower Urea and DAP offtake by 10% and 69% YoY, respectively tagged with a fall in Urea prices by 16% YoY.

Gross margins are expected to be 35% during 4QCY20 compared to 33.45% in 4QCY19 given lower DAP offtake. Moreover, financial charges are projected to fall by 14% YoY to PKR 565mn amid a drop in interest rates.

Other income is expected to plunge by 48% YoY to PKR 366mn mainly owing to fall in income from financial assets.

Furthermore, we expect the company to book a re-measurement gain on GIDC of PKR 1,843mn in 4QCY20. Alongside the result, we expect the company to announce a final cash dividend of PKR 2.00/share in 4QCY20 (PKR 11.00/share in CY20).