Fertiliser: ENGRO CHEMICAL PAKISTAN LIMITED - For the First Quarter Ended March 31 2004

The principal activity of the company is manufacturing, purchasing and marketing of fertilisers. Engro Chemical Pakistan Limited is also involved in the production and marketing of seeds and has invested in joint ventures engaged in chemical related activities.
As a part of its diversification strategy, controlling interest has been acquired in a company offering industrial solutions in automation and control.
At present its share is trading at the price of Rs 98 per share which is nearly 10 times of the par value of Rs 10.
The company's share is always in great demand so the share's market value remains high. During the last one year price of its share ranged between Rs 77.25 and Rs 108 per share. During Q1 2004, the company's sales, gross profit and net profit substantially improved as compared to Q1 2003.
The directors of the company made optimistic assessment of overall market demand for urea. According to them demand increased by 19% during the first quarter 2004 as compared to the same period last year when sale was lower mainly on account of pre-stocking by the dealers in December 2002.
The company's urea sales were up 8% to 180 thousand tons. The performance of Daharki urea plant remained excellent. It is also reported that Engro Urea production in second quarter will be affected by about three weeks shut down of Daharki area plant for routine maintenance.
The second quarter outlook for urea business continues to look promising. On a full year leases the urea industry is expected to have moderate growth over 2003. Its joint ventures, Engro Vopa Terminal Ltd, Engro Asahi Polymer & Chemicals Ltd and Innovative Automation & Engineering Ltd have come upto expectations in terms of profitability and objectives.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                 March 31  December 31

                                     2004         2003

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Share Capital-Paid-up:           1,529.40     1,529.40

Reserves & Profit:               4,407.96     4,134.14

Shareholders Equity:             5,937.36     5,663.54

L.T Debts:                       3,236.40     3,235.50

Deferred Liabilities:              999.62     1,036.61

Current Liabilities &

 Provisions:                     2,250.54     2,929.35

Fixed Assets:                    7,156.24     7,095.72

L.T Investments:                 1,424.56     1,424.56

L.T Loans & Advances:               86.18        75.22

Deferred Expenditure:               30.24        44.81

Current Assets:                  3,726.70     4,224.69

Total Assets:                   12,423.92    12,865.00

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Profit & Loss A/c For the

 First Quarter Ended        March 31 2004         2003

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Net Sales:                       1,670.65     1,577.26

Gross Profit:                      685.27       675.29

Operating Profit:                  506.14       493.63

Other Income:                       29.67        39.06

Financial & Other (Charges):       (70.82)    (130.77)

Profit Before Taxation:            433.25       374.38

Profit After Taxation:             273.82       234.18

Earnings Per Share (Rs):             1.79         1.53

Share Price (Rs) on 05.07.2004:     98.00            -

Price/Earning Ratio:                54.75            -

Book Value of Share (Rs):           38.82        37.03

Debt/Equity Ratio:                  35:65        36:64

Current Ratio:                       1.66         1.44

Gross Profit Margin (%):            41.02        42.81

Net Profit Margin (%):              16.39        14.84

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