According to local research house report, Engro Corporation (ENGRO) announced 1QCY18 NPAT of PRs4.19bn (EPS: PRs8.01), up by a massive 48% YoY. The result was above markets expectation of NPAT PRs3.78bn (EPS: PRs7.23) as both key subsidiaries Engro Fertilizer (EFERT) and Engro Polymer (EPCL) posted above expected results.

The company also announced an interim cash dividend of PRs5.0/sh.

Key highlights during the quarter included 49% YoY growth in net sales and 96% YoY growth in operating profits. The resultant growth was mostly due to 2.4x/1.7x YoY NPAT growth in EFERT/ EPCL.

Net sales grew 49% YoY due to (i) 85%/45% YoY rise in Urea/DAP offtakes, (ii) 23%/22% YoY growth in PVC/caustic sales and (iii) additional contract to supply additional 230mmcfd LNG at 0.17cents through Engro Elengy in the system. However due to better primary margins in Fertilizer business, and rise in realized ethylene in core delta, GMs improved 4ppt on a YoY basis.