Engro Fertilizers Limited (PSX: EFERT) announced the financial result for for the first quarter ended March 31, 2024 (1QCY24) today, posting a consolidated Profit after Tax (PAT) of Rs. 10,784 million (EPS: Rs. 8.08).
The company posted profit of Rs. 4,404 million (EPS: PKR 3.30) and Rs. 11,147 million (EPS: Rs. 8.35) in 1QCY23 and 4QCY23, respectively. The company’s 1QCY24 profit was up by 145 percent year-on-year (YoY) and down by 3 percent quarter-on-quarter (QoQ).
In addition to the result, the company announced an interim cash dividend of Rs. 8.00 per share (Rs. 3.50 per share in 1QCY23), according to a result review of the company issued by Arif Habib Limited.
Topline in 1QCY24 clocked in at RS. 73,783 million, up by 68 percent YoY given i) a surge in urea and DAP prices by 66 percent and 22 percent YoY, respectively, and ii) a massive jump in DAP offtake by 85 percent YoY. Urea offtake, on the other hand, remained stable.
On a sequential basis, the net sales reduced by 2 percent amid a fall in urea and DAP sales by 9 percent and 29 percent QoQ, respectively.
Gross margins arrived at 30.52 percent (up by 603 bps YoY) in 1QCY24 on account of higher urea prices. Meanwhile, the gross margins on a QoQ basis declined by 820 bps amid higher gas prices.
Other income depicted a jump of 79 percent YoY arriving at Rs. 1,286 million in 1QCY24 owed to a jump in income from cash and cash balances.
Finance cost depleted by 63 percent on a YoY basis and 41 percent on a QoQ basis to Rs. 160 million during 1QCY24 owing to a decline in borrowings.
The company booked a reversal of the loss allowance on subsidy receivables from the government amounting to Rs. 58 million in 1QCY24 against the loss allowance on subsidiary receivables from the government of Rs. 432 million in 1QCY23 and Rs. 1,937 million in 4QCY23.
The company booked effective taxation at 37 percent in 1QCY24 vis-a-vis 35 percent in 1QCY23.
Shame to Engro ,minted blood money of poor farmers by them and thier nominated agents…