KARACHI: Engro Fertilisers’ profit dived 86% to Rs570.8 million for the quarter ended March 31, 2020 on the back of lower sales volume.
The company had reported an after-tax profit of Rs4 billion in the same period of previous year, according to a notice sent to the Pakistan Stock Exchange on Monday.
Earnings per share stood at Rs0.43 in the period under review compared to Rs3 in the same period of previous year.
Net sales of the company came in at Rs10.8 billion in Jan-Mar 2020, down 54.4% due to a significant decrease in urea offtake amid higher prices compared to its peers along with a decline in di-ammonium phosphate (DAP) offtake.
“Gross margins stood at 34% during the period under review compared to the 1QCY19 level (32%) as a result of lower DAP offtake,” said AHL Research in its report.
Meanwhile, selling and distribution expenses were down 35% to Rs1.1 billion during the Jan-Mar 2020 quarter due to decline in sales across all portfolio products. Other income took a massive hit as it plunged 74% to Rs261 million in the period under review from Rs1.01 billion in the same period of previous year.
“Other income declined substantially due to absence of gains on disposal recorded last year,” said Topline Securities’ analyst Sunny Kumar. On the other hand, finance cost soared 52% to Rs1.2 billion on the back of higher interest rates and borrowings of the company.
Engro Fertilisers’ share price was down Rs0.94 or 1.63% to Rs56.88 with trading volume of 13.1 million shares at the Pakistan Stock Exchange.
Published in The Express Tribune, April 21st, 2020.
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