Engro Fertilizers Limited (PSX: EFERT) has released its financial results for the first quarter ending March 31, 2024 (1QCY24) today, revealing a consolidated Profit after Tax (PAT) of Rs. 10,784 million (EPS: Rs. 8.08).
Compared to profits of Rs. 4,404 million (EPS: PKR 3.30) in 1QCY23 and Rs. 11,147 million (EPS: Rs. 8.35) in 4QCY23, the company’s 1QCY24 profit surged by 145% year-on-year (YoY) but declined by 3% quarter-on-quarter (QoQ).
Additionally, the company declared an interim cash dividend of Rs. 8.00 per share (compared to Rs. 3.50 per share in 1QCY23), according to a review issued by Arif Habib Limited.
Topline for 1QCY24 reached Rs. 73,783 million, up by 68% YoY, driven by a 66% surge in urea and 22% in DAP prices, along with an 85% increase in DAP offtake. Urea offtake remained steady.
On a sequential basis, net sales dipped by 2% due to a 9% decrease in urea sales and a 29% drop in DAP sales QoQ.
Gross margins rose to 30.52% (up by 603 bps YoY) in 1QCY24 due to higher urea prices, but decreased by 820 bps QoQ due to elevated gas prices.
Other income surged by 79% YoY to Rs. 1,286 million in 1QCY24, primarily from increased income from cash and cash balances.
Finance costs decreased by 63% YoY and 41% QoQ to Rs. 160 million during 1QCY24 due to reduced borrowings.
The company recorded a reversal of the loss allowance on subsidy receivables from the government, amounting to Rs. 58 million in 1QCY24, compared to a loss allowance of Rs. 432 million in 1QCY23 and Rs. 1,937 million in 4QCY23.
Effective taxation stood at 37% in 1QCY24, compared to 35% in 1QCY23.
