October 13, 2021 (MLN): Engro Fertilizers Limited (PSX: EFERT), has disclosed its financial performance today for 9MCY21, wherein the fertilizer giant reported a 30% YoY increase in after-tax profits to Rs14.9bn (EPS: Rs11.17/sh) compared to Rs11.49bn (Rs8.61/sh) in the corresponding period last year.
Results were accompanied with an interim cash dividend of Rs11.5/share.
The jump in the company’s earnings was emanated from 12%YoY higher offtake in Urea, 54%YoY contraction in finance cost in light of the low-interest rate environment and 42% YoY increase in Other income on account of higher dividend income from EAPL in the 1QCY21, higher interest income from government securities, term deposit certificates and bank deposits.
The top-line of the company registered a growth of 18.69% YoY, mainly on the back of record high rise in Urea Prices currently stands at Rs1,812/bag as a result of which gross profits of the company grew by 28% YoY to Rs31bn. Subsequently, the margins of the company jumped to 33% from 31% during 9MCY20, despite the discontinuation of concessionary gas prices.
Selling and distribution expenses remained stagnant while admin expenses inched up by 10% YoY. On the taxation front, the company’s effective tax rate stood at 31% against 19% in SPLY.
In addition, the company also booked a loss on the re-measurement of GIDC provision amounting to Rs786mn.
Consolidated Financial Results for the Nine months ended Sep 30, 2021 (Rupees'000) | |||
|---|---|---|---|
| Sep-21 | Sep-20 | % Change |
Net sales | 92,742,114 | 78,138,036 | 18.69% |
Cost of sales | (61,718,437) | (53,900,431) | 14.50% |
Gross profit | 31,023,677 | 24,237,605 | 28.00% |
Selling and distribution expenses | (5,996,344) | (5,990,180) | 0.10% |
Administrative expenses | (1,359,623) | (1,234,810) | 10.11% |
Other income | 1,428,778 | 1,005,870 | 42.04% |
Other operating expenses | (1,685,296) | (1,148,896) | 46.69% |
Finance cost | (1,265,572) | (2,762,935) | -54.19% |
Loss on remeasurement of GIDC provision | (786,114) | – |
|
Reversal of ECL on subsidy receivable from GoP | 272,710 | – |
|
Profit before taxation | 21,632,216 | 14,106,654 | 53.35% |
Taxation | (6,711,462) | (2,615,972) | 156.56% |
Profit for the period | 14,920,754 | 11,490,682 | 29.85% |
Earnings per share – basic and diluted | 11.17 | 8.61 | 29.73% |
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