During the period under review, earnings per share (EPS) remained Rs4.18 against an EPS of Rs2.45 in previous calendar year. Significant improvement in the company’s earnings was primarily witnessed due to additional gas received last year, which enabled the increase in urea production, Global Research said.
Moreover, decline in financial charges was due to the improved cash flow generation.
On a quarter-on-quarter basis, the company’s profit-after-tax (PAT) clocked in at Rs2.14 billion or an EPS of Rs1.62 during the third quarter of calendar year 2014 against Rs1.81 billion or an EPS of Rs1.37 during the comparative period last year.
For nine months of calendar year 2014, the company’s revenues grew year on year by 27% to Rs43.70 billion against Rs34.42 billion booked during the same period last year.
Higher urea off-take during the period was the primary reason for an improvement in revenues. The company started receiving additional gas supplies from Mari SML, Guddu, and Reti Maru, and thus was able to increase its urea off-take by 24% year on year to 1.32 million tons during the period.
On a quarter-on-quarter basis, the company revenues clocked in at Rs16.04 billion during the third quarter of calendar year 2014 against Rs13.9 billion booked in the third quarter of calendar year 2013.
Because of incomplete pass through of Gas Infrastructure Development Cess (GIDC) hike to final consumers and higher maintenance cost because of technical issues at base plant, the company gross margins contracted by 6.97 to 36.4% during nine months of calendar year 2014. Similarly, on a quarter on quarter basis, gross margins declined by 8.06 to 37.7% during the third quarter of calendar year 2014.
Engro Fertilizer’s finance cost plunged significantly by 29% year on year to Rs4.96 billion during nine months of calendar year 2014, because of rapid repayment by the company to its lenders.
However, on a quarter-on-quarter basis, the company’s finance cost increased by 14% to Rs1.89 billion in the third quarter of calendar year 2014, largely due to exchange losses on the unhedged dollar denominated loans.
Published in The Express Tribune, October 24th, 2014.
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