Engro Fertilizer Ltd. (EFERT) is scheduled to disclose the financial result for the period 1HCY21 on 29th Jul’21, where we expect the company to post a Profit after Tax of PKR 10,279mn (EPS: PKR 7.69) compared to PKR 4,457mn (EPS: PKR 3.34) in 1HCY20, showing a massive jump of 2x YoY.

On the other hand, the net profit during 2QCY21 is estimated to be PKR 4,538mn (EPS: PKR 3.39), up by 17% YoY. This growth is owed to ascend in urea and DAP prices by 5% and 62% YoY, respectively. Whereas, urea and DAP offtake plunged by 22% and 48% YoY, respectively.

Gross margins are expected to be 38% during 2QCY21 compared to 32% in 2QCY20 given higher urea prices. Furthermore, financial charges are anticipated to plummet by 54% YoY to PKR 412mn given lower interest rates. Other income is forecasted to surge by 117% YoY to PKR 529mn, owed to higher income from financial assets.

Alongside the result the company is expected announce a cash dividend of PKR 2.00/share (PKR 6.00/share in 1HCY21).

Source: Company Financials, AHL Research