Islamabad, Oct 29: Engro Corp Reports 48% Profit Decline in 2024
With a consolidated profit after tax of Rs. 11.983 billion (EPS: Rs. 22.33), Engro Corporation Limited (PSX: ENGRO) reported its 9MCY24 financial results, showing a 48 percent YoY decrease. Consolidated earnings for the quarter came to Rs. 5.722 billion (EPS: Rs. 10.66), a 53 percent YoY decline.
The company also declared a dividend of Rs. 5.00 per share in 3QCY24 (Rs. 24.00 per share in 9MCY24) in conjunction with the results.
During the nine months, revenue from ongoing operations increased by 12 percent to Rs. 279 billion, up from Rs. 250 billion during the same period in 2023.
Regarding the fertilizer industry, Engro Fertilizers Limited’s (PSX: EFERT) profits for 3QCY24 were Rs. 8,554 million (EPS: Rs. 6.41), an 11% YoY decrease. This, according to Arif Habib Limited, is because i) urea and DAP offtake have decreased by 33% and 14% year over year, respectively, and ii) higher finance costs are a result of an increase in short-term borrowings.
Due to lower PVC margins and higher gas prices, Engro Polymer & Chemicals Limited (EPCL) reported a loss of Rs. 698 million (LPS: Rs. 0.77) as opposed to a net profit of Rs. 2,642 million (EPS: Rs. 2.91).
In the face of greater dairy product sales, FCEPL reported earnings of Rs. 766 million (EPS: Rs. 1.00), up 3x YoY, thanks to a 190bps improvement in gross margins to 15.40 percent.
Due to a spike in cash revenue and cash balances, ENGRO’s other income showed a 53 percent YoY increase during 3QCY24.
Higher short-term borrowings caused the company’s financing costs to increase by 41% year over year.
In comparison to the gain allowance on subsidiary receivables from the government of Rs. 1 million in 3QCY23, the company recorded a gain on allowance on subsidy receivable from the government of Rs. 464 million in 3QCY24.
In 3QCY24, the business recorded effective taxation of 39.95 percent, compared to 40.54 percent in 3QCY23.
ENGRO’s scrip at the stock exchange was Rs. 310.71 at the time of filing, down 1.47 percent, or Rs. 4.63, from Tuesday’s 345,206 shares.
