April 17, 2023 (MLN): The profitability of Engro Fertilizers Limited (PSX: EFERT) has dropped by 20% YoY to Rs4.4 billion [EPS: Rs3.3] for the first quarter ended on March 31, 2023, compared to Rs5.51bn [EPS: Rs4.13] in the same period last year, the company’s filing on PSX showed today.
In conjunction with the results, the company also announced an interim cash dividend for the year at Rs3.5 per share i.e., 35%.
Due to the increase in urea prices, the top line of the company registered a growth of 19.5% YoY to stand at around Rs44bn in 1QCY23. However, the 28% YoY surge in cost of sales has dented the gross margins of the company to 24.49% compared to 29.50% in 1QCY22.
On the expense side, the selling & distribution expenses and admin expenses jumped by 22.45% YoY and 23.54% YoY to Rs2.46bn and Rs554.7 million, respectively.
Other income of the company has also increased by 40.24% YoY to Rs717mn in 1QCY23.
Despite the higher interest rate regime, the finance cost of the company witnessed a meager drop of 8.3% YoY Rs435.3mn in the review period.
On the taxation front, the company paid Rs2.38bn in 1QCY23, more than 10.38% YoY than the amount paid in the same period last year.
| Consolidated Financial Results for the first quarter ended March 31, 2023 (Rupees’000) | |||
|---|---|---|---|
| Mar-23 | Mar-22 | % Change | |
| Net sales | 43,991,099 | 36,813,078 | 19.50% |
| Cost of sales | (33,216,023) | (25,952,101) | 27.99% |
| Gross profit | 10,775,076 | 10,860,977 | -0.79% |
| Selling and distribution expenses | (2,467,646) | (2,015,241) | 22.45% |
| Administrative expenses | (554,792) | (449,070) | 23.54% |
| Other income | 717,033 | 511,284 | 40.24% |
| Other operating expenses | (611,265) | (448,652) | 36.24% |
| Finance cost | (435,318) | (474,733) | -8.30% |
| Remeasurement gain on provision for GIDC | (200,508) | (226,128) | -11.33% |
| Loss allowance on subsidy receivable from GoP | (432,449) | (85,578) | 405.33% |
| Profit before taxation | 6,790,131 | 7,672,859 | -11.50% |
| Taxation | (2,385,923) | (2,161,536) | 10.38% |
| Profit for the period | 4,404,208 | 5,511,323 | -20.09% |
| Earnings per share – basic and diluted | 3.3 | 4.13 | -20.10% |
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Posted on: 2023-04-17T10:58:53+05:00
