April 19, 2022 (MLN): Engro Fertilizers Limited (PSX: EFERT) has reported a net profit worth Rs5.51 billion (EPS: Rs4.13) in 1QCY22 ended on March 31, 2022, down by 4% YoY compared to Rs5.74bn (EPS: Rs4.3) in 1QCY21, the company filing on PSX showed today.
In conjunction with the results, the company also announced an interim cash dividend for the quarter at Rs5.5 per share i.e., 55%.
The top-line of the company registered a growth of 25% YoY to stand at Rs36.81bn in 1QCY21 amid a surge in urea and DAP prices by 13% and 96% YoY, respectively followed by a growth in DAP offtake by 5% YoY. Meanwhile, urea offtake plummeted by 11% YoY, as reported by Arif Habib Limited.
Meanwhile, the company accrued industrial feed gas rate at the EnVen plant since the concessionary gas period ended on June 30, 2021, which resulted in the drop of the company’s gross margin by 975 bps to 29.50% from 39.25% in 1QCY21.
Selling & distribution expenses and admin expenses witnessed an increase of 10.27% YoY and 9.13% YoY to Rs2bn and Rs449mn, respectively, while the other income of the company also moved up to Rs511mn owing to the higher income from cash and cash balances.
On the back of higher interest rates, the financial cost has jumped by 76.42% in 1QCY22.
The company paid Rs2.16bn in terms of taxation, 26% YoY higher than the amount paid in 1QCY21.
In addition, the company also booked a loss on the re-measurement of GIDC provision amounting to Rs226mn in the review period.
|
Consolidated Financial Results for the third quarter ended March 31, 2022 (Rupees'000) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Net sales |
36,813,078 |
29,443,723 |
25.03% |
|
Cost of sales |
(25,952,101) |
(17,885,979) |
45.10% |
|
Gross profit |
10,860,977 |
11,557,744 |
-6.03% |
|
Selling and distribution expenses |
(2,015,241) |
(1,827,495) |
10.27% |
|
Administrative expenses |
(449,070) |
(411,516) |
9.13% |
|
Other income |
511,284 |
479,069 |
6.72% |
|
Other operating expenses |
(448,652) |
(672,245) |
-33.26% |
|
Finance cost |
(474,733) |
(269,092) |
76.42% |
|
Unwinding of remeasurement loss on provision for GIDC |
(226,128) |
(297,056) |
-23.88% |
|
Unwinding of loss allowance on subsidy receivable from GoP |
(85,578) |
100,784 |
– |
|
Profit before taxation |
7,672,859 |
8,660,193 |
-11.40% |
|
Taxation |
(2,161,536) |
(2,918,766) |
-25.94% |
|
Profit for the period |
5,511,323 |
5,741,427 |
-4.01% |
|
Earnings per share – basic and diluted |
4.13 |
4.3 |
-3.95% |
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