According to a notice issued to the Pakistan Stock Exchange on Thursday, the fertiliser maker posted a profit of Rs3.9 billion for the same quarter last year. The enterprise’s net sales in the April-June 2021 quarter were Rs25.9 billion, down 13.35 per cent from the Rs29.9 billion registered in the same quarter the previous year.
“During the quarter, net sales fell due to a 22% and 48% decrease in urea and di-ammonium phosphate (DAP) offtake, respectively, on a year-over-year basis,” said Arif Habib Limited analyst Iqbal Jawaid.
Due to increased urea prices, gross margins in the second quarter of the calendar year 2021 were 38.01 per cent, up 538 basis points year over year.
In the second quarter of 2021, the company’s other income more than doubled to Rs533.6 million. In the same period the previous year, the income under this heading was Rs243.5 million.
The company’s finance costs decreased by 36.3 per cent, from Rs895.8 million in the April-June quarter of the previous year to Rs570.5 million in the current quarter. Engro Fertilisers’ share price closed at Rs75.23 on Thursday, up Rs0.86 on the Pakistan Stock Exchange, with 3.26 million shares changing hands.
As a result, the company’s earnings per share (EPS) increased from Rs2.91 in April-June 2020 to Rs3.6 in the current quarter. The company also announced a cash dividend of Rs4 per share to go along with the results.
