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)
Cost of sales
Selling and distribution expenses
Other operating expenses
Loss on remeasurement of GIDC provision
Reversal of ECL on subsidy receivable from GoP
Profit before taxation
Profit for the period
Earnings per share – basic and diluted
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