Despite Pandemic Engro Fertilizer Posts 22 Percent Increased Profit

Engro Fertilizer Limited posted a 22% increase in profit to Rs3.89 billion for the quarter ended June 30,

Despite Pandemic Engro Fertilizer Posts 22 Percent Increased Profit

2020 Against Rs3.18 billion in the corresponding period of previous year.

Engro Fertilizer, Earnings per share (EPS) of the company stood at Rs2.91 in the April-June 2020 quarter compared to Rs2.38 in the same period of last year, according to a notification sent to the Pakistan Stock Exchange on Thursday.

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On the other hand, the company recorded a 38% plunge in profit in the half-year period ended June 30, 2020, which stood at Rs4.46 billion. It had posted earnings of Rs7.18 billion in the same period of previous year.

EPS for the half-year period came in at Rs3.34 compared to Rs5.38 in the same period of previous year.

“The earnings announcement came in line with our and industry expectations,” said Topline Research analyst Sunny Kumar.

Alongside the result, the company announced an interim cash dividend for the half year ended June 30, 2020 of Rs4 per share ie 40%.

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In the second quarter of 2020, net sales of the company increased 11% year-on-year due to an uptick in urea offtake. Urea offtake increased 52% to 696,000 tons compared to 458,000 tons in the second quarter of 2019.

However, DAP offtake declined by 24% year-on-year to 80,000 tons during the quarter under review compared to 104,000 tons in the same period of previous year.

Other income of the company dived 83% to Rs243.5 million in the April-June 2020 quarter from Rs1.43 billion in the same period of previous year. The dip in other income came due to the absence of reversal of liability for the Workers Welfare Fund recorded last year, the analyst commented.

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Other operating expenses jumped 111% to Rs1.22 billion during the period under review “as the company booked certain provisions on account of sales tax, as per our channel checks”.

However, finance cost of the company dropped to Rs895.8 million in April-June 2020 compared to Rs1.22 billion in the previous year.

This news was originally published at tribune.com.pk

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