Engro Fertilizers Q1CY25 Profit Falls 63% to Rs2.9 Billion

Engro Fertilizers Limited (EFERT), a titan in Pakistan’s fertilizer industry, reported a staggering 63% plunge in profit after tax (PAT) for the first quarter ending March 31, 2025, dropping to Rs2.90 billion from Rs7.76 billion a year earlier, as disclosed in its consolidated financial results to the Pakistan Stock Exchange (PSX) on Tuesday.

The announcement triggered a sharp market reaction, with EFERT’s stock price falling over 2% by 1:29 pm. Earnings per share (EPS) slumped to Rs2.17 from Rs5.81 year-on-year, reflecting the financial strain. Despite the downturn, EFERT declared a cash dividend of Rs2.25 per share for 1QCY25, signaling resilience.

Net sales plummeted 58% to Rs30.29 billion, down from Rs73.78 billion, while the cost of sales dropped 65% to Rs19.60 billion from Rs56.59 billion, yielding a gross profit of Rs10.68 billion, compared to Rs17.20 billion last year. Selling and distribution expenses fell to Rs3.22 billion from Rs4.39 billion, but administrative expenses rose to Rs1.24 billion from Rs1.10 billion. Alarmingly, finance costs skyrocketed 580% to Rs1.09 billion from Rs160.5 million, driven by increased financial pressures. As a result, profit before tax sank to Rs4.9 billion from Rs12.11 billion.

A subsidiary of Engro Corporation, EFERT commands a 35% market share in Pakistan’s fertilizer sector as of 2023, operating major facilities in Daharki and Port Qasim. Headquartered in Karachi, the company, established in 2010, is renowned for products like Zarkhez, Zingro, Zorawar, and Zoron. Despite the quarterly setback, EFERT’s 2024 PAT of Rs28.3 billion, up 8% from the prior year, underscored its operational efficiency and cost optimization.