Engro Fertilizers Limited (EFERT) announced the financial result for 1QCY22 today, posting a consolidated Profit after Tax (PAT) of PKR 5,511mn (EPS: PKR 4.13) compared to PKR 5,741mn (EPS: PKR 4.30) in SPLY, down by 4% YoY. In addition to the result, the company announced an interim cash dividend of PKR 5.50/share (PKR 4.00/share in 1QCY21).

Result Highlights

Topline in 1QCY22 clocked-in PKR 36,813mn, up by 25% YoY amid surge in urea and DAP prices by 13% and 96% YoY, respectively followed by a growth in DAP offtake by 5% YoY. Meanwhile, urea offtake plummeted by 11% YoY.

Gross margins arrived at 29.50% (down by 975bps YoY) in 1QCY22 as the company accrued industrial feed gas rate at the EnVen plant since concessionary gas period ended on 30th Jun’21.

Other income depicted an increase of 7% YoY arriving at PKR 511mn in 1QCY22 owed to higher income from cash and cash balances.

Finance cost ascended by 76% YoY to PKR 475mn during 1QCY22 due to higher interest rates.

The company booked effective taxation at 28% in 1QCY22 vis-à-vis 34% in 1QCY21.

Courtesy – AHL Research