ENGRO FERTILIZERS - Aiman Jamil

ANALYSIS OF FINANCIAL STATEMENTS
OF
ENGRO FERTILIZERS
AIMAN JAMIL
• Public limited company
• Incorporated in PSE on June 29, 2009.
Company • The principal activity of Engro Fertilizer

• Manufacturing
Profile • Purchasing and

• Marketing of fertilizers (Urea, CAN,
DAP, NP, and NPK)
In year 2017 & 2018, Engro Fertilizer was declared one of the
top 25 companies of Pakistan Stock exchange.
History
Esso
Exxon Engro
Subsidiar
Fertilizers Fertilizers
y
Market Share
Urea Market Share 2019

DAP Market Share 2019
9%
20%
26%
13% 30%
15%
39%
48%
EFERT FFBL FFC Others

EFERT Fauji Group Fatima Others
Excellent financial performance of Engro Fertilizers during the period from
FY2015 to FY2019
assessing the balance sheet strength

The company’s financial performance growing profits in the profit & loss statement
has been measured by a positive & growing cash flow statement
effective utilization of plant capacity
Common Size analysis – Vertical analysis of statement of changes in financial

position and profit & loss statement.
Ratios Analysis – liquidity, profitability, efficiency, solvency and cash-flow

ratios.
Common-Size Analysis
Vertical Analysis
Total Equity
45.0 27,000,000
40.0
26,500,000
35.0
26,000,000
30.0
25.0 25,500,000
20.0 25,000,000
15.0
24,500,000
10.0
24,000,000
5.0
- 2019 2018 2017 2016 2015

23,500,000
Non Current Liabilities
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
1 2 3 4 5
Non Current Liabilities Borrowings Defferred liabilities Defferred taxation

Current Liabilities
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
1 2 3 4 5
Current Liabilities Trade and other payables borrowings

Non-Current Assets
80.0 5,800,000
70.0 5,600,000
60.0 5,400,000
50.0 5,200,000
40.0 5,000,000
30.0 4,800,000
20.0 4,600,000
10.0 4,400,000
- 4,200,000
2019 2018 2017 2016 2015
Non Current Assets Property, Plant and Equipment Intangible assets Depreciation
Current Assets
50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
1 2 3 4 5
Current Assets Stock in trade Trade debts Other receivables
Gross Profit
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
-
2019 2018 2017 2016 2015
Taxation
12.00
10.00
8.00
6.00
4.00
2.00
-
2019 2018 2017 2016 2015
Net Profit
20,000,000 30.0%
18,000,000
25.0%
16,000,000
14,000,000
20.0%
12,000,000
10,000,000 15.0%
8,000,000
10.0%
6,000,000
4,000,000
5.0%
2,000,000
- 0.0%
2019 2018 2017 2016 2015
Profit for the year Net Profit Margin

Finance Cost
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
2019 2018 2017 2016 2015
(1,000,000)
Long-term borrowing Short term borrowings (Gain)/Loss on fair value of IFC conversion option
Foreign exchange gain/loss Finance Cost
Gross Sales
120,000,000 45.00
40.00
100,000,000
35.00
80,000,000 30.00
25.00
60,000,000
20.00
40,000,000 15.00
10.00
20,000,000
5.00
- -
2019 2018 2017 2016 2015
Gross Sales Net Sales Cost of Sales Gross Profit Profit for the year
Production Cost
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2019 2018 2017 2016 2015
Total Capacity (Metric Tons) Actual Production (Metric Tons) Sales (KT)
Financial Ratios Analysis
Liquidity Ratios
70,000,000 1.20
60,000,000
1.00
50,000,000
0.80
40,000,000
0.60
30,000,000
0.40
20,000,000
0.20
10,000,000
- 0.00
2019 2018 2017 2016 2015
Current Assets Current Liabilities Current ratio Quick / Acid test ratio
Profitability Ratios
35,000,000 45.0%
40.0%
30,000,000
35.0%
25,000,000
30.0%
20,000,000
25.0%
20.0%
15,000,000
15.0%
10,000,000
10.0%
5,000,000
5.0%
- 0.0%
2019 2018 2017 2016 2015
Profit for the year Gross Profit Gross Profit Margin Net Profit Margin
Profitability Ratios
140,000,000 50.0%
45.0%
120,000,000
40.0%
100,000,000 35.0%
30.0%
80,000,000
25.0%
60,000,000
20.0%
15.0%
40,000,000
10.0%
20,000,000
5.0%
- 0.0%
2019 2018 2017 2016 2015
Total Equity Total Assets Return on Equity Return on Assets

Efficiency Ratios
350
300
250
200
150
100
50
0
2019 2018 2017 2016 2015
Days Inventory Days Receivales Days Payables

Solvency Ratios
2.50 12.00
10.00
2.00
8.00
1.50
6.00
1.00
4.00
0.50
2.00
0.00 0.00
1 2 3 4 5
Total Debt to Equity Total Debt to Assets Interest Coverage Ratio

Cashflow Ratios
140.00%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2019 2018 2017 2016 2015
Current Cash Debt Coverage Ratio Cashflow to Net Income Ratio Cashflow Margin Ratio
Cashflow Coverage Ratio
THANK YOU

ENGRO FERTILIZERS - Aiman Jamil

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ANALYSIS OF FINANCIAL STATEMENTS

Company • The principal activity of Engro Fertilizer

Profile • Purchasing and

Urea Market Share 2019

EFERT FFBL FFC Others

assessing the balance sheet strength

Common Size analysis – Vertical analysis of statement of changes in financial

Ratios Analysis – liquidity, profitability, efficiency, solvency and cash-flow

- 2019 2018 2017 2016 2015

Non Current Liabilities Borrowings Defferred liabilities Defferred taxation

Current Liabilities Trade and other payables borrowings

Profit for the year Net Profit Margin

Total Equity Total Assets Return on Equity Return on Assets

Days Inventory Days Receivales Days Payables

Total Debt to Equity Total Debt to Assets Interest Coverage Ratio

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