Engro Fertilizer’s profit increased 906 percent to Rs5.74 billion in the quarter ended March 31, 2021, owing to increased fertilizer consumption and prices.

The firm posted a profit of Rs570.76 million during the same quarter last year, according to a notice submitted to the Pakistan Stock Exchange (PSX) on Monday.

As a result, the company’s earnings per share were Rs4.3 in the January-March 2021 quarter, compared to Rs0.43 in the same period the previous year.

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In addition to the results, the corporation declared an interim cash dividend of Rs4 per share. The company’s net revenues increased by 172.8 percent from Rs10.8 billion in January-March 2020 to Rs29.4 billion in January-March 2021.

“Net sales in 1QCY21 ascended by 173% year-on-year amid a huge growth in urea and di-ammonium phosphate (DAP) offtake by 3.5 times and 1.8 times year-on-year respectively and surge in DAP prices by 27%,” stated a report of Arif Habib Limited. “On the other hand, urea prices declined 2% year-on-year.”

Given the significant increase in urea offtake, gross margins increased to 39.25 percent in 1QCY21 from 33.68 percent in 1QCY20.

Engro fertilizer producer’s selling and marketing expenditures increased by 73%, increasing from Rs1.1 billion in January-March 2020 to Rs1.8 billion in the first three months of 2021.

Similarly, administration expenditures increased by 14.8% to Rs411.5 million in the January-March period of this year, from Rs358.3 million in the same quarter last year.

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During the quarter under analysis, the firm’s other profits increased by more than 80% to Rs479.1 million. The group had posted other revenue of Rs261.2 million in the same quarter of the previous year.

“Other income surged owing to higher income from financial assets,” the report said.

Finance costs fell by 77.8 percent from Rs1.2 billion in January-March 2020 to Rs269.1 million in January-March 2021.