Engro Corporation Limited (ENGRO) disclosed its financial performance for the first quarter of 2024, revealing a consolidated net profit of Rs. 5.719 billion, marking a 23 percent increase from Rs. 4.647 billion recorded in the same period last year.
The boost in profitability can be attributed to increased fertilizer sales, enhanced margins, optimized plant operations, elevated earnings from dollar-denominated ventures, and cost-saving measures.
In conjunction with the financial report, the company declared an interim cash dividend of Rs. 11.00 per share for the first quarter of 2024.
According to a concise analysis by Arif Habib Limited, EFERT’s earnings in the fertilizer sector reached Rs. 10.78 billion in the first quarter of 2024, doubling year-on-year (YoY). This surge was fueled by a 66 percent increase in urea prices, a 22 percent rise in DAP prices YoY, an 85 percent surge in DAP sales, and a decrease in finance costs due to reduced short-term borrowings.
Conversely, Engro Polymer & Chemicals Limited (EPCL) experienced a loss of Rs. 901 million (loss per share: Rs. 0.99) compared to a net profit of Rs. 1.18 billion (earnings per share: PKR 1.30) in the same period. This downturn was attributed to higher gas prices and weakened PVC margins.
Additionally, ENGRO’s other income witnessed a 9 percent YoY decline during the first quarter of 2024, primarily due to reduced income from cash and cash balances.
