EFERT : Just In 1QCY16 EPS stands at PkR1.59 - By Shajar Research

<p></p><ul><li><span style="font-size:small;">Engro Fertilizer Limited (EFERT) announced 1QCY16 results today. In this regards, EFERT posted an unconsolidated profit of PkR2.1bn (EPS: PkR1.59) in 1QCY16, recording a significant decline of 31% as against last year.</span></li></ul><ul><li><span style="font-size:small;">The company recorded a gross profit margin of 39.2% vs. 38.3% which we attribute to rising inventory backlog. Net Sales declined by 29%YoY owing to steep fall in urea offtakes to 286k tons (down 41%YoY) and 2%YoY lower retention prices. The reduction in urea offtakes can be attributed to pile-up of inventory by dealers amid hefty discounts in the last quarter 2016 and expectation of further discounts going forward.</span></li></ul><ul><li><span style="font-size:small;">The accretion in GP Margin came despite 18%YoY hi...