OUR STAFF REPORTER LAHORE - Engro Corporation (ENGRO) announced its 1H2011 result, reporting flat earnings of Rs3.4b (EPS: Rs8.60) compared to Rs3.4b (EPS: Rs8.64) in the corresponding period last year. The result is well below expectation of Rs10.8 per share mainly on account of lower earnings of its fertilizer business (higher financial and other charges). Though, net sales of the company grew by 37 per cent YoY to Rs46.1bn, higher cost of sales of Rs33.0bn (up, 35 per cent YoY) kept gross margins flat at 28 per cent. Furthermore, companys financial and other charges increased by a massive 80 per cent to Rs4.4bn, which put additional pressure on the bottom line. The company also announced a first interim cash dividend of Rs2 per share with the result. At current levels experts maintain 'Buy call on the scrip. The result was also accompanied with cash dividend of Rs2 per share. Out of Rs8.6 per share earnings, companys main stream urea business (Engro Fertilizer) contributed around Rs5.5 per share (1H2010 Rs5.1), though higher than last year but lower than market expectation.