On Monday Engro Fertilizers Limited (EFERT) released its financial results for the year ended 31st December 2015 and also announced distribution of 30 percent final dividend, taking full year payout to 60 percent. The results were above market expectation.
The Company has posted profit after tax of Rs15.027 billion (EPS: Rs11.30) for the year ended 31st December 2015 (CY15) as compared to a profit of Rs8.207 billion (EPS: Rs6.20) for the previous year, a hefty increase of 83 percent.
The increase in profit can be attributed to 42.64 percent increase in net sales. The Company posted net sales of Rs87.615 billion for CY15 as compared to Rs61.424 billion, thanks to enhanced gas supply.
There was reduction in financial cost to Rs4.587 billion from Rs6.625 billion that also supported in improving the bottom-line, though very nominally. Reduction in financial cost was due to the declining interest rate scenario.
However, there was slightly more than 30 percent reduction in other income.
The positive point was that imported urea sales went down by 32%YoY in CY15 due to the increase in indigenous production.