Engro Fertilizers Limited (PSX: EFERT) has recorded its highest-ever consolidated quarterly profit of Rs. 9.6 billion during the three months ended on September 30th, 2023, up 129 percent YoY, according to Topline Securities.
This takes 9MCY23 earnings to Rs. 15 billion, up 57 percent YoY. Along with the result, EFERT announced an interim cash dividend of Rs. 6.0 per share, taking the cumulative dividend in 9MCY23 to Rs. 12.5 per share. The 3QCY23 result came higher than industry expectations due to higher-than-estimated net sales.
Net Sales of the company increased by 85 percent YoY to Rs. 66 billion due to a jump in urea and DAP offtake by 54 percent YoY to 655,000 and 63 percent YoY to 84,000 tons, respectively. Additionally, higher retention prices also played a role in boosting net sales. Gross Margins increased by 4.9 percentage points YoY to 31.7 percent in 3QCY23.
Selling and Distribution expenses increased by 56 percent YoY due to an increase in volumetric sales of urea and DAP. Meanwhile, the other income of the company increased by 260 percent YoY to Rs. 737 million in 3QCY23 due to higher interest income.
Despite higher interest rates, finance costs declined by 14 percent YoY and 29 percent QoQ possibly due to loan retirement. Effective tax rate clocked in at 39 percent in 3QCY23 versus 33 percent in 3QCY22 and 85 percent in 2QCY23. Earnings per share of the company clocked in at Rs. 7.17 for 2QCY23 and Rs. 11.27 for 9MCY23.
EFERT’s scrip at the bourse closed at Rs. 88.73, up by 4.57 percent or Rs. 3.88 with a turnover of 9,900,552 shares on Thursday.
