Engro Fertilizers Limited (EFERT) has reported a consolidated loss of Rs. 98.31 million in the 2nd quarter that ended on June 30, calendar year (CY) 2022.
According to the company’s financial results, the company reported a profit of Rs. 4.76 billion in the same period last year. This takes half-year profitability to Rs. 5.4 billion, down 48 percent against the profit of Rs. 10.5 billion in the first half of last year.
The company reported a loss due to a higher charge for super tax and a significant increase in other operating expenses. According to a report by Foundation Securities, the decline in the company’s profitability was due to the imposition of super tax in the fiscal year 2022-23 (FY22) budget.
The company declared no interim cash dividend during 2QCY22. The deviation in earnings is primarily due to the imposition of a 4 percent super tax of Rs. 1.6 billion on deferred tax during 2QCY22. Engro Fertilizer recorded a 10 percent super tax charge on 2021 earnings of Rs. 3 billion, and a 4 percent super tax on 1H2022 earnings of Rs. 594 million.
However, the net sales of the company increased by 48 percent year-on-year (YoY) to Rs. 38.32 billion during 2QCY22 from Rs. 25.91 billion in the same period last year. EFERT had recently increased Urea prices by Rs. 350/bag.
Gross profit increased by 18.70 percent to Rs. 11.6 billion from Rs. 9.8 billion in the same period last year.
During the quarter, other operating expenses increased by 210.50 percent to Rs. 1.40 billion from Rs. 451 million.
The company reported a loss per share of Rs. 0.07 during the quarter, as compared to Rs. 3.57 earnings per share in the same period last year.
EFERT’s scrip at the bourse was closed at Rs. 80.36, down by Rs. 3.65 or 4.35 percent, with a turnover of 8.10 million shares on Thursday.
