KARACHI: Engro Fertilisers’ revenue inched down 2.5% to Rs3.18 billion within the quarter ended June 30, 2019 owing to greater finance price and different working bills.
The corporate had reported a revenue of Rs3.26 billion in the identical interval of earlier 12 months, based on a notification despatched to the Pakistan Inventory Trade (PSX) on Thursday.
Accordingly, the earnings per share (EPS) of the corporate declined from Rs2.44 within the earlier 12 months to Rs2.38 within the Apr-Jun 2019 quarter.
The board of administrators advisable an interim money dividend of Rs5 per share.
In the course of the day, the corporate’s share value rose Rs1.88 to Rs63.87 with buying and selling in 2.5 million shares on the PSX.
Internet gross sales of the corporate elevated 17.87% to Rs26.99 billion within the quarter beneath evaluation versus Rs22.9 billion in the identical quarter of earlier 12 months. “Engro Fertilisers posted earnings of Rs3.2 billion (EPS Rs2.38), down 2.5% year-on-year primarily on the again of upper different working bills and finance price,” Topline Securities mentioned in post-result feedback.
Consolidated gross margins of the corporate elevated 2.three proportion factors year-on-year to 31.5% in 2Q2019 owing to excessive retention costs of urea and decrease proportion of di-ammonium phosphate (DAP) gross sales, it added.
“Regardless of a discount in volumetric gross sales by Eight-9% year-on-year, the corporate achieved 18% year-on-year development in revenues on the again of urea value hike,” it identified.
In the course of the quarter, finance price of the corporate soared 237% to Rs1.22 billion in comparison with Rs362.1 million final 12 months. Topline mentioned monetary fees swelled within the wake of enhance within the State Bank’s coverage charge and borrowings.
Different revenue of Engro Fertilisers elevated from Rs509.four million in Apr-Jun 2018 to Rs1.43 billion in Apr-Jun 2019, an increase of 180.1%.
“Efficient tax charge of the corporate got here in at 48% within the consolidated enterprise and 34% within the core urea enterprise throughout 2Q2019 owing to partial reversal of tax credit which it utilised in earlier quarters (near Rs2 billion) amid decline in future tax charges by the federal government,” the report mentioned.
“We flag rupee depreciation, regulatory management on the fertiliser trade, poor crop season and unfavourable resolution associated to GIDC (fuel infrastructure improvement cess) as key dangers to our earnings/valuation forecast,” it mentioned.
Engro Fertilisers reported a revenue of Rs7.18 billion for the half 12 months ended June 30, 2019. It was zero.5% greater than Rs7.15 billion recorded within the corresponding interval of earlier 12 months. EPS of the corporate inched as much as Rs5.38 from Rs5.35 final 12 months.
Internet gross sales within the half 12 months stood at Rs50.6 billion, up 23.16% in comparison with Rs41.1 billion in the identical interval of earlier 12 months.