EFERT is set to post big profit jump in 2QCY25
Engro Fertilizers (EFERT), one of Pakistan’s top fertilizer companies, is expected to deliver strong results for the second quarter of 2025. The company is likely to report a profit of PKR 5.8 billion, which means earnings per share (EPS) of PKR 4.4, that’s 3.5 times more than the same period last year!
Let’s break down what’s driving this big improvement
More sales = more profit
- Urea Sales Jumped
EFERT sold 431,000 tons of urea in 2QCY25, up 40% from last year, and 66% higher than the previous quarter. - DAP Sales Surged Too
EFERT’s DAP sales rose by 33% year-on-year and more than doubled (up 131%) compared to the last quarter, reaching 56,000 tons.
These strong sales numbers helped push the company’s total revenue to PKR 53.4 billion, up from PKR 39.4 billion in the same quarter last year.
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Better margins, lower costs
- Gross margins (a measure of how much money is made after production costs) are expected to reach 31%, up from 18% last year.
- Compared to last quarter, margins will be slightly lower due to rising input costs, but still solid.
- Finance costs (interest payments) are expected to drop to PKR 0.9 billion, down from PKR 1.1 billion in the previous quarter, thanks to lower debt.
Expected dividend
EFERT is expected to reward shareholders with a cash dividend of PKR 4.25 per share, a positive signal for investors looking for steady income.
Quick snapshot
| Metric | 2QCY25 | 2QCY24 | YoY Change | 1QCY25 | QoQ Change |
|---|---|---|---|---|---|
| Urea Sales | 431kt | 307kt | +40% | 260kt | +66% |
| DAP Sales | 56kt | 42kt | +33% | 24kt | +131% |
| Revenue | PKR 53.4bn | PKR 39.4bn | +35% | — | — |
| EPS (Earnings/Share) | PKR 4.4 | PKR 1.25 | +3.5x | — | — |
| Expected Dividend | PKR 4.25/sh | — | — | — | — |
EFERT is bouncing back strong in 2QCY25 with higher fertilizer sales, better profit margins, and reduced costs. For investors, the outlook is bright, especially with a healthy dividend expected.
Source: Insight Securities (Private) Limited
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⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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