Corporate result: Engro Fertilizers posts distinction of Rs9.3b, down 37%
KARACHI: Engro Fertilizers Limited (EFERT) announced a extensive distinction of Rs9.3 billion in a year finished Dec 31, 2016, down 37% compared with Rs14.8 billion in a prior year, according to a association notice sent to a Pakistan Stock Exchange (PSX).
Earnings per share (EPS) declined to Rs6.98 compared with an EPS of Rs11.14 in a duration underneath review.
On Wednesday, EFERT’s share cost sealed during Rs69.68, down 1.2%. The KSE-100 Index sealed during 49,874, down 15 points or 0.03%.
The company’s income declined notwithstanding an uptick in Urea off-take (seasonality and supervision measures), that increasing by 8% year-on-year.
Engro Fertilizers creates Rs2.9b distinction in Q3
Low prevalent influence cost in a domestic marketplace on a behind of discounts offering to pull urea volumes ceiling kept net revenues of a association in check, according to a Topline Securities report.
Distribution cost grew by 45% year-on-year to Rs3.2 billion in a fourth entertain of 2016, that was aloft than expectations given fertilizer off-take during a duration and translated into operating distinction of Rs2.3 billion in a fourth entertain of 2016 (down 24% year-on-year).
Other income, that includes funding on Urea of Rs156 per bag (under Kisan service package) along with Rs300 per bag funding on Di-ammonium Phosphate (DAP) sales, was next expectations (based on off-take numbers for Urea and DAP for fourth entertain of 2016).
Fertiliser funding easy on PM’s directive
This along with aloft placement costs contributed towards decrease in bottom line of 32% year-on-year.
During 2016, income of EFERT posted a decrease of 19% while sum margins declined by 10 commission points to 25% (Gross Margin down 4 commission points year-on-year after accounting for subsidy) due to a estimable tumble in urea influence prices and decrease in urea off-take (12% year-on-year for 2016).
DAP off-take jumped by 36% year-on-year for 2016, though unsuccessful to support distinction due to low domain on alien stocks.
Key risks for association embody brief lived ramifications of a subsidy, deception of Gas Infrastructure Development Cess (GIDC) on concessionary gas and miss of improving agronomics, a news added.
Article source: https://tribune.com.pk/story/1320829/corporate-result-engro-fertilizers-posts-profit-rs9-3b-37/