The management of Engro Fertilizers Limited (EFERT) today disclosed the financial result for 1HCY23, posting a consolidated profit after Tax (PAT) of Rs. 5.46 billion against Rs. 5.41 billion in 1HCY22, showing an uptick of 1 percent year-on-year (YoY).
According to the Company’s financial result, consolidated earnings in 2QCY23 clocked in at Rs. 1.059 billion compared to a loss of Rs. 98 million in the same period last year.
Along with the result, the company announced an interim cash dividend of Rs. 3.00 per share, which is in addition to the interim cash dividend already paid at Rs. 3.5 per share (35 percent).
Net sales in 1HCY23 clocked in at Rs. 82.3 billion, up by 10 percent YoY amid a surge in urea and DAP prices by 44 percent and 6 percent YoY, respectively, according to Arif Habib Limited. Meanwhile, urea and DAP offtake went down by 6 percent and 27 percent YoY, respectively.
On a quarterly basis, the topline during 2QCY23 remained stable at Rs. 38.3 billion owing to a jump in urea and DAP prices by 43 percent and 2 percent YoY, respectively, offsetting the 12 percent and 2 percent YoY decline in urea and DAP sales, respectively.
Gross margins in 1HCY23 settled at 27 percent compared to 30 percent in SPLY on account of the revision in prices of feed and fuel gas (PP12) and the delay in passing on the impact via higher urea prices in 1QCY23. In Q2, margins arrived at 29.77 percent amid lower urea offtake and higher repair and maintenance costs given the closure of the base plant for one month.
Other income depicted an increase of 6 percent YoY settling at Rs. 1.16 billion in 1HCY23 owed to higher income from cash and cash balances. However, in 2QCY23, the other income came out to be Rs. 447 million, showcasing a fall of 24 percent YoY owing to a decline in short-term investments.
Finance cost ascended by 8 percent YoY to Rs. 1.13 billion during 1HCY23 amid higher interest rates. In 2QCY23, the same metric swelled by 21 percent YoY, reaching Rs. 702 million due to the aforementioned reason.
The company booked effective taxation at 85 percent in 2QCY23 compared to 101 percent in 2QCY22. The taxation during the quarter includes an additional 6 percent super tax levied on the profit before tax of CY22 and 1HCY23, respectively coupled with deferred tax liability adjustment.
EFERT posted earnings per share (EPS) of Rs. 0.79 for 2QCY23 while an EPS of Rs. 4.09 for the half year.
At the time of filing, the company’s scrip at the bourse was Rs. 82.5, down by 1.17 percent or Rs. 0.98 with a turnover of 1,246,124 shares on Thursday.
