We expect EFERT’s consolidated EPS at Rs7.2 in 4Q2023 compared to EPS of Rs4.8 in 4Q2022, up 51% YoY. The YoY jump in earnings is due to higher gross margins and lower financial charges. Gross Margin is expected to improve by 6ppts to 28% in 4Q2023 compared to 23% in 4Q2022, mainly due to increased Urea prices and the absence of repair charges recorded last year.

On a sequential basis, we expect earnings to increase by 1% QoQ, even with a 13% QoQ decline in Urea sales, thanks to higher Urea prices and a significant 42% QoQ reduction in finance cost.

Courtesy- Topline Pakistan Research