Engro Fertilizers Limited has announced its financial results for the year that ended on 31 December 2020.
According to the notification to the Pakistan Stock Exchange (PSX), the company has booked a profit of Rs. 18.13 billion, increasing by 7.50 percent, as compared with a profit of Rs. 16.87 billion earned in 2019.
During the year, the net sales of the company decreased by 12.80 percent to Rs. 105.84 billion, as compared to Rs. 121.35 billion due to the lower volumetric sales of urea and DAP. The increase in earnings had been due to a one-off gain of Rs. 2.1 billion on the measurement of the GIDC liability. However, the impact of the same had been diluted by Rs. 1.2 billion loss allowance on subsidy receivables from the Government of Pakistan, as per a report by Ismail Iqbal Securities.
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A lower than expected gain on the GIDC has been offset by a lower effective tax rate. Along with the results, the company has also announced a final cash dividend of Rs. 4 per share. This is an addition to the interim dividends already paid at Rs. 9 per share.
The gross profits were reduced to Rs. 34.25 billion, as compared to Rs. 39.53 billion due to lower sales in 2020.
The other income of the company had seen a decline of 13 percent to Rs. 3.78 billion in 2020 as compared to Rs. 4.35 billion due to lower short-term investments and lower interest rates.
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The finance cost had also come down by 16.75 percent to Rs. 3.23 from Rs. 3.88 billion.
The company had paid 70 percent lesser taxes in 2020 as compared to 2019. It had paid Rs. 3.16 billion worth of taxes in 2020 as compared to Rs. 10.52 billion.
The earnings per share of the company were reported at Rs. 13.58 as compared to Rs. 12.61. At the time of the filing of this report, EFERT’s shares at the bourse were trading at Rs. 64.57, up by Rs. 1.42 0r 2.25 percent, with a turnover of 6.78 million shares on Monday.
