EFERT announces cash dividend of Rs 9 per share for 9MCY20

MG News | October 21, 2020 at 03:19 PM GMT+05:00

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October 21, 2020 (MLN): Engro Fertilizers Limited (EFERT) has reported 9% YoY increase in net profits to Rs 11.49 billion for the nine months period ended on September 2020, compared to the profits of Rs 10.5 billion earned in the corresponding period last year.

This caused the company’s earnings per share to clock in at Rs 8.61 against Rs 7.87 reported last year.

Alongside financial results, EFERT announced interim cash dividend of Rs 5 per share. This takes 9MCY20 DPS to Rs 9 per share.

The profitability of the company mainly attributed to decline inf effective tax rate, lower financial cost and stability in sales revenue.

During the period, company’s net sales remained stable due to increase in Urea and DAP offtakes, while its cost of sales jumped by 2% YoY, translating into a gross margin of 31% against 32% in the same period last year. This decline in gross margins is mainly attributable to lower urea prices, said the report by IGI Securities.

Moreover, due to series of rate cuts in benchmark interest rates during previous quarter, the finance cost of the company declined by 14% YoY.

According to the report, the major respite to earnings came from lower tax rate which stood at 19% as compared to 40% in same period last year.

Consolidated Financial Results for the nine months ended September 30, 2020 (Rupees'000)
	Sep-20	Sep-19	% Change
Net sales	78,138,036	77,749,136	0.50%
Cost of sales	(53,900,431)	(52,794,633)	2.09%
Gross profit	24,237,605	24,954,503	-2.87%
Selling and distribution expenses	(5,990,180)	(5,449,526)	9.92%
Administrative expenses	(1,234,810)	(887,347)	39.16%
Other income	1,005,870	3,652,650	-72.46%
Other operating expenses	(1,148,896)	(1,489,298)	-22.86%
Finance cost	(2,762,935)	(3,228,796)	-14.43%
Profit before taxation	14,106,654	17,552,186	-19.63%
Taxation	(2,615,972)	(7,041,530)	-62.85%
Profit for the period	11,490,682	10,510,656	9.32%
Earnings per share - basic and diluted	8.61	7.87	9.40%

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