Engro Fertilizer earns Rs4 billion in first quarter

KARACHI: Engro Fertilizer Limited’s profit slightly rose three percent year-on-year to Rs4 billion for the first quarter ended March 31, 2019, translating into earnings per share (EPS) of Rs3, a bourse filing said on Friday.

Engro Fertilizer earned Rs3.8 billion with EPS of Rs2.9 in the corresponding quarter a year earlier. The company didn’t announce any cash dividend.

Brokerage Topline Research said the growth was mainly on the back of one-off gain in other income.

“Land valuing Rs650 million was sold to Engro Polymer and Chemicals Limited,” Topline Research said in a flash note.

“Excluding this one-off gain the result of core operating income was in line with our expectation.”

Other income fell to Rs1 billion in 1Q2019 compared to Rs1.1 billion in the corresponding period a year earlier.

Revenue, during the three months, rose to Rs23.6 billion from Rs18.2 billion a year earlier. The growth was due to a 30 percent growth in urea prices, according to Taurus Securities.

The effective tax rate clocked in at 27 percent versus 30 percent.

Gross margin fell eight percentage points year-on-year to 32 percent in 1Q2019 due to

currency devaluation as 70 percent of the company’s gas prices were indexed to exchange rate parity. Finance cost increased 56 percent year-on-year to Rs798 million in 1Q as a result of higher interest rates.

“We flag rupee depreciation, regulatory control, poor crop season and unfavourable decision related to GIDC (gas infrastructure development cess) as key risks,” Topline Research added.

Mari Petroleum’s profit increases 55pc in 9 months

Mari Petroleum Company Limited’s profit increased 55 percent to Rs16.8 billion for the nine months period ended March 31, 2019, translating into EPS of Rs138.6.

Mari Petroleum earned Rs10.7 billion with EPS of Rs88.9 in the corresponding period a year earlier.

The company didn’t announce any cash dividend.

Mari’s revenue significantly increased to Rs43.5 billion in July-March period compared to Rs28.5 billion in the corresponding period a year earlier.

Finance cost decreased to Rs497 million from Rs786 million.

Other income increased to Rs67 million in the first nine months compared to Rs39 million.

The company’s profit rose to Rs5.7 billion in the third quarter ended March 31, with EPS of Rs47.4, compared to Rs3.9 billion in the corresponding quarter a year earlier with EPS of Rs32.7.

Other expenses in 3QFY19 settled at Rs304 million compared to Rs269 million, up by 13 percent, owing to decline in income from seismic unit.

The company booked effective taxation of 28 percent in 3QFY19 versus 33 percent in 3QFY18.

Lotte Chemical’s quarterly profit shoots up to Rs1.3bln

Lotte Chemical Pakistan Limited’s profit jumped to Rs1.3 billion for the quarter ended March 31, 2019 compared to Rs355 million in the corresponding quarter a year earlier.

The EPS was Re0.85 in January-March compared to Re0.23 a year earlier.

The company didn’t announce any cash dividend.

Analyst Rao Aamir Ali from Arif Habib Limited said Lotte’s sales increased 30 percent year-on-year to Rs16.1 billion in 1Q2019, “which is majorly owing to a nine percent rise in PTA (purified terephthalic acid) prices and a 20 percent rupee depreciation (during the period)”.

Gross margins increased 260 basis points to 11.7 percent due to rupee depreciation, although international purified terephthalic acid margins were down eight percent.

Searle Company’s profit falls 24pc in July-March

The Searle Co Limited’s profit decreased 24 percent to Rs1.789 billion for the nine month period ended March 31, 2019, translating into EPS of Rs8.34.

The Searle Co Limited earned Rs2.355 billion with EPS of Rs10.99 in the corresponding period a year earlier.

The company didn’t announce any cash dividend. Sales improved 13 percent on recent hike in medicine prices.

Analyst Nabeel Khursheed from Topline

Securities see regulatory and legal issues restricting price increase, policies uncertainty, delay in introduction of new products and higher cost of production as key risks.