EFERT: Lower finance cost, higher Other income lift profitability

News Image

By MG News | October 13, 2021 at 05:05 PM GMT+05:00

0:00

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%

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 125,627.31
258.99M
1.00%
1248.25
ALLSHR 78,584.71
1,142.41M
1.16%
904.89
KSE30 38,153.79
69.25M
0.63%
238.06
KMI30 184,886.50
91.38M
0.01%
13.72
KMIALLSHR 53,763.81
554.57M
0.54%
290.61
BKTi 31,921.68
33.15M
1.78%
557.94
OGTi 27,773.98
9.65M
-0.40%
-112.21
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,555.00 107,860.00
107,530.00
-680.00
-0.63%
BRENT CRUDE 66.63 67.20
65.92
-0.17
-0.25%
RICHARDS BAY COAL MONTHLY 97.00 97.00
97.00
1.05
1.09%
ROTTERDAM COAL MONTHLY 107.65 107.65
105.85
1.25
1.17%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 64.93 65.02
64.83
-0.18
-0.28%
SUGAR #11 WORLD 16.19 16.74
16.14
-0.52
-3.11%

Chart of the Day


Latest News
June 30, 2025 at 11:55 PM GMT+05:00

TRG: Dominos Tumbling for the Management


June 30, 2025 at 10:08 PM GMT+05:00

SBP’s March FX intervention stands at $860m



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg