Engro Fertilizers posts Rs 646m profit in first quarter | Pakistan Today

Engro Fertilizers posts Rs 646m profit in first quarter

Engro Fertilizers, an unlisted company, announced for 1Q2013 a profit of Rs 646 million compared. This was compared to a loss of Rs 1.4 billion the company had braved during the same period of last year. It translates into the earning per share (EPS) of Rs 1.3 as against LPS of Rs 2.8 on Engro Corporation shares, said the market observers. After facing adverse operating environment in 1Q2012, the fortunes of fertilizer business in the agrarian Pakistan turned around in 1Q2013. “Engro Fertilizers profits improved due to four-time favorable volumetric variance,” viewed Topline analyst Asad I. Siddiqui. The analyst said higher urea sales were due to higher production, as the company was running its more efficient EnVen plant. Furthermore, he said, standing water issue that depressed urea sales in same period previous year was not an issue this time. The company’s overall revenues grew by three folds to Rs9.7 billion while cost of sales increased by 139 percent Rs 5.5 billion. On the other hand, 16 percent reduction in financial charges also supported Engro Fertilizers profitability. After 1Q2013 result announcements of three major subsidiaries of Engro Crop, it’s rather easier to estimate 1Q2013 earnings of the holding company Engro Corp.

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