Engro Corp., a Pakistani group that makes fertilizer, dairy products and plastics, said full-year profit rose 73 percent on higher sales.
Net income rose to 6.44 billion rupees ($75.6 million), or 20.72 rupees a share, in the 12 months ended Dec. 31, from 3.72 billion rupees or 12.24 rupees a share a year ago, the Karachi- based company said in a statement to the stock exchange today. Sales rose to 79.9 billion rupees from 58.2 billion.
The company’s fertilizer business contributed 83 percent to Engro’s profits, Sarah Afridi, a research analyst at IGI Finex Securities, who has a “buy” recommendation on the stock, wrote in a report to clients on Feb. 11. The price of urea rose 16 percent in 2010 to 813 rupees for a 50 kilogram (110 pounds) bag.
Engro Corp. plans to pay a cash dividend of 2 rupees a share, according to the statement. It also plans to give out one free share for every five held.
Engro rose 2.8 percent to 215.98 rupees at 2:06 p.m. on the Karachi Stock Exchange.
To contact the editor responsible for this story: Stephen Foxwell at email@example.com.