Engro Corporation’s profit rose 62.23% to Rs. 6.83 billion in the quarter ended March 2018, mainly due to a marked improvement in Fertilizer (EFERT) and Chemical (EPCL) businesses.
The conglomerate recorded a profit of Rs. 4.21 billion in the same quarter of previous year.
Earnings per share improved to Rs. 8.01 in Jan-Mar 2018 from Rs. 5.42 in the corresponding period of last year.
Board of directors has recommended interim cash dividend of Rs. 5 per share.
Net sales of the group of companies soared a massive 49.04% to Rs. 33.52 billion in the Jan-Mar 2018 quarter, from Rs. 22.49 billion in the corresponding period of the previous year. The fertilizer and polymer businesses witnessed a growth of 81% year on year and 28% year on year to Rs. 18 billion and Rs. 8.7 billion respectively.
Cost of sales increased to 40% to Rs. 22 billion from Rs. 15.78 billion. Selling and distribution expenses increased to 23.65% to Rs. 1.83 billion from Rs. 1.48 billion.
Finance costs came down by 6.87% to Rs. 1.22 billion from Rs. 1.31 billion. The share of income from joint ventures and associates came down to Rs. 416.05 million from Rs. 450.36 million.
Cause of Surge
Fertilizer segment surged on the back of an increase in urea sales volumes by 89% to 510K tons, while the Polymer business recorded the highest ever sales volume of 54k tons which was up by 23% Year on Year.
Other income went up by 10% year on year to Rs. 2.6 billion due to the inclusion of one-time insurance gain of Rs. 276 million Polymer businesses.
Engro’s script at the bourse closed at Rs. 313.10, up by 0.27% with a turnover of 780,900 shares.