Karachi, February 10, 2022 (PPI-OT): EFERT: CY21 Result Review
Engro Fertilizers Limited (EFERT) announced 4QCY21 result where the company posted NPAT of PkR6.7bn (EPS: PkR4.63) taking the cumulative CY21 earnings to PkR21.1bn (EPS: PkR15.8), growing by 16.3%YoY. In addition to this, the company announced DPS of PkR5.0, taking the cumulative CY21 pay out to PkR16.5/sh.
The earnings came in slightly above our expectations where the deviation was due to higher gross margins recorded by the company in 4QCY21 (32.9% vs 25.7% in 3QCY21). The cumulative CY21 gross margin stood at 33.3%, higher by 34bps vs CY20.
The revenue depicted a growth of 25.1%YoY in CY21 on account of 12%YoY increase in urea offtakes and cumulative hike of PkR125/bag post GIDC elimination thereby neutralizing the adverse impact.
The operating profit stood at PkR33bn in CY21 compared to PkR24.5bn in CY20, inflating by 37% on account of better margins.
We have a Neutral stance on EFERT with Dec’22 TP of PkR83.4/sh and DY of 15.3% at the last close.