October 18, 2019 (MLN): Engro Fertilizers Limited (EFERT), in its latest financial results, has posted net earnings of Rs. 10.5 billion (EPS: Rs. 7.87) for the nine months ended September 30, 2019, i.e. approx. 14% lower than the earnings reported in same period last year.
As per the analysis done by market spectators, the decline in profits was an inevitable outcome of drop in the Urea and Dap offtakes during the stated period.
On the brighter side, EFERT managed to report a positive change in gross profits despite its inability to pass on the impact of gas tariff hike onto the consumers during July and August.
The finance costs surged by 127% owing to hike in interest rates during the aforesaid period. On the other hand, non-core income increased by 95% on the back of higher interest income on short-term investments as well as one-off gain made on the sale of its subsidiary, Engro Eximp FZE.
The company also announced an Interim Cash Dividend for the quarter ended September 30, 2019 at Rs. 6 per share i.e. 60%. This is in addition to interim dividend already paid at Rs. 5 per share i.e. 50%.
Consolidated Financial Results for the nine months ended September 30, 2019 (Rupees'000)
Cost of sales
Selling and distribution expenses
Other operating expenses
Profit before taxation
Profit for the period
Earnings per share – basic and diluted
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