Engro Fertilizers profit jumps 25.77% to Rs4.8 billion

KARACHI: Engro Fertilizers Limited’s earnings for the second quarter ended June 30, 2021 surged 25.77 per cent to Rs4.8 billion (EPS: Rs3.6), compared with the net profit of Rs3.8 billion (EPS: Rs2.91) in the corresponding period of the last year, a bourse filing said on Thursday.

The company declared an interim cash dividend of Rs4/share. This is in addition to the interim dividend of Rs4/share already paid to the shareholders, which brings the total payout to Rs8/share for the six-month period ended June 30, 2021.

The sales revenue for the quarter declined Rs13.37 per cent to Rs25.90 billion as against the sales of Rs29.90 billion during the same period of the last year.

“As per the latest data released by NFDC, urea off-take for the 2QCY21 clocked-in at 1.5 million tonnes versus a higher base of 1.65 million tonnes in the corresponding period of [the] last year, showing a decline of 9 per cent. To recall, dealers awaited clarification on the subsidy offered on urea during 2QCY20, which led to delayed off-take falling in the month of June 2020,” Muhammad Waqas Ghani at JS Global Capital noted in a report.

The company’s finance costs declined 36.32 per cent to Rs570.40 million during the second quarter, compared with Rs895.80 million in the same of the last year.

Moreover, other income increased 119 per cent to Rs533.50 million.

For the half-year ended June 30, 2021, Engro Fertilizers posted a net profit of Rs10.50 billion, translating into the earnings per share (EPS) of Rs7.87 as against the profit of Rs4.45 billion and the EPS of Rs3.34 in the same period last year.

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