Engro Fertilizers Limited (EFERT) has reported a consolidated profit after tax of Rs. 9.595 billion in the nine months that ended on September 30, calendar year (CY) 2022.
According to the company’s financial results, the company’s profits show a 36 percent drop from Rs. 14.921 billion in the same period last year. This is due to the super tax imposed on the PAT of CY21 and 9MCY22 plus hefty deferred tax adjustments.
Consolidated earnings during 3QCY22 settled at Rs. 4.182 billion, down by 5 percent year-on-year (YoY).
Net sales during the period clocked in at Rs. 110.876 billion, up by 20 percent year on year on a surge in urea and DAP prices by 24 percent and 94 percent YoY, respectively, while offtake for both commodities went down by 13 percent and 18 percent YoY, according to a report by Arif Habib Ltd.
On a quarterly basis, the topline for 3QCY22 arrived at Rs. 35.7 billion, depicting a 4 percent YoY drop on the back of declining urea and DAP sales amid heavy rains and flash floods.
Gross margins for Engro Fertilizers clocked in at 29.14 percent during 9MCY22 compared to 33.45 percent in 9MCY21 since the manufacturer accrued an industrial feed gas rate at the EnVen plant.
In 3QCY22, margins clocked in at 24.73 percent due to higher urea prices and better trade margins on DAP.
Other income during the period fell by 55 percent YoY at Rs. 1.304 billion due to decreased income from cash and cash balances. In Q3, it arrived at Rs. 205 million owing to a massive decline in short-term investments.
The finance cost of the company climbed 30 percent YoY to Rs. 1.64 billion during 9MCY22 due to high-interest rates but declined by 37 percent YoY in Q3 to arrive at Rs. 582 million over higher short-term borrowings and interest rates.
EFERT booked effective taxation at 33 percent during Q3 compared to 30 percent in the corresponding period last year.
The company announced a cash dividend of Rs. 3.00 per share for the quarter. This is in addition to the Rs. 8.50 per share dividend that has already been announced for the period.
It reported earnings per share of Rs. 7.19 during the period, as compared to Rs. 11.17 in the same period last year.
At the time of filing this report, EFERT’s scrip at the bourse was trading at Rs. 81.18, down by Rs. 0.36 or 0.44 percent with a turnover of 1.53 million shares on Wednesday.