April 19, 2019 (MLN): Engro Fertilizers Limited has ended the quarter on a rather sluggish note, as its Profits after Tax for the quarter ended March 31, 2019, have been recorded at Rs. 4 billion, which is merely 3% higher than the figures of same period last year.
This insignificant change in net earnings was a result of increase in both sales revenue and cost of sales by relatively same amount, which led to change in gross profit margins by only 3.6%.
Moreover, decline in urea offtake along with lower DAP realized margins amid PKR depreciation during the period also played a major role in keeping the profits at bay.
The other income of the company fell by 10.66%, as previously there was subsidy on fertilizer sales; which was removed in October.
On the other hand, the financial costs of the company surged by a noticeable margin, mainly due to the hike in interest rates.
However, the company performed better than market expectations, as most of the brokerage houses were expecting a significant decline in net earnings.
Profit and loss account for the quarter ended March 31 2019 (Rupees'000)
