Engro Fertilizer Limited (EFERT) is scheduled to announce the financial result for CY22 on 9th Feb’23, where we expect the company’s net profit to clock-in at PKR 14.7bn (EPS: PKR 11.01), depicting a decline of 30% YoY owed to super tax imposition during the period on the profit before tax of CY21 and CY22.

On a quarterly basis, the bottom-line is expected at PKR 5.1bn (EPS: PKR 3.82), declining by 17% YoY. Net sales are projected to witness a growth of 10% YoY on the back of i) jump in urea and DAP prices by 27% and 41% YoY, respectively, and ii) 3% YoY uptick in DAP offtake. However, urea offtake depleted by 25% YoY.

Gross margins are anticipated to settle at 27.05% in 4QCY22 vs. 32.94% in SPLY owed to a dip in urea offtake. Furthermore, financial charges are expected to surge by 139% YoY given higher interest rates. Other income is expected to climb up by 38% YoY, amid higher income from cash and cash balances.

Alongside the result, we expect the company to announce a final dividend of PKR 3.00/share in 4QCY22 (PKR 11.50/share in CY22.

Courtesy- AHL Research