Engro Fertilizers Limited (EFERT), a fully owned subsidiary of Engro Corporation Limited, reported a profit after tax (PAT) of Rs8.55 billion for the third quarter ending September 30, 2024, marking an 11% decline compared to Rs9.58 billion during the same period last year, according to the company’s consolidated financial results shared with the Pakistan Stock Exchange (PSX) on Monday.
The profit translates into earnings per share (EPS) of Rs6.41 for 3QCY24, down from an EPS of Rs7.17 recorded in the same quarter last year.
The earnings surpassed market expectations, which had projected EFERT’s EPS to be around Rs5.
During its meeting on October 14, the Board of Directors (BoD) of EFERT also declared an interim cash dividend of Rs2.5 per share (25%) for the third quarter. This follows the previously paid interim cash dividend of Rs11 per share (110%).
On a consolidated level, Engro Fertilizers’ revenue dropped nearly 11% to Rs58.64 billion in 3QCY24, compared to Rs66.17 billion in the corresponding quarter last year.
In contrast, Engro Fertilizers posted earnings of Rs1.6 billion in 2QCY24, reflecting a 57% year-on-year increase.
Amid declining revenue, the company’s gross profit dropped by 13% to Rs18.31 billion, down from Rs20.99 billion. Consequently, the profit margin decreased slightly to 31.2% in 3QCY24 from 31.7% in the same quarter of the previous year.
EFERT’s interest expenses surged by 155%, reaching Rs1.28 billion in 3QCY24 compared to Rs499.3 million in the same period last year. This rise in financial costs is largely due to higher interest rates during the period.
As a result, the company’s profit before tax (PBT) stood at Rs14.03 billion for 3QCY24, down by over 11%.
During this period, EFERT paid Rs5.5 billion in taxes, lower than the Rs6.2 billion paid during the same quarter last year.
