Engro Fertilizers’ earnings stand at Rs8.6bn in 3QCY24, down 11% YoY

Engro Fertilizers Limited (EFERT), a wholly-owned subsidiary of Engro Corporation Limited, posted a profit after tax (PAT) of Rs8.55 billion for the third quarter ended September 30, 2024, a decrease of 11% as compared to Rs9.58 billion recorded in the same period of the previous year, showed the company’s consolidated financial results posted at the Pakistan Stock Exchange (PSX) on Monday.

The profit translates into earnings per share (EPS) of Rs6.41 in 3QCY24, in comparison to an EPS of Rs7.17 recorded in the same period of the previous year.

The earnings are higher than market expectations, which expected EFERT’s earnings to clock near Rs5 per share.

The Board of Directors (BoD) of EFERT in its meeting held on October 14, also announced an interim cash dividend for the third quarter at Rs2.5 per share i.e. 25%. This is in addition to the interim cash dividend already paid at Rs11 per share i.e. 110%.

On a consolidated basis, Engro Fertilizers’ revenue declined by nearly 11% to Rs58.64 billion in 3QCY24 from Rs66.17 billion in 3QCY23.

Engro Fertilizers’ earnings stand at Rs1.6bn in 2QCY24, up 57% YoY

Amid a decline in revenue, the fertilizer manufacturer’s gross profit declined significantly by 13% to Rs18.31 billion as compared to Rs20.99 billion. As a result, the profit margin reduced to 31.2% in 3QCY24, down from 31.7% in the preceding year.

EFERT’s interest expense increased by 155% to reach Rs1.28 billion in 3QCY24, as compared to Rs499.3 million in same period of the previous year. The rise in finance cost can be attributed to an increase in interest rate during the period.

Consequently, the company posted a profit before tax (PBT) of Rs14.03 billion in 3QCY24, a decrease of over 11%.

During the period, the company paid Rs5.5 billion in taxes in 3QCY24, lower than Rs6.2 billion in same period last year.