Islamabad, Aug 22: Engro Corporation Limited (ENGRO) reported a consolidated profit after tax of Rs. 6.261 billion for the 1HCY24 fiscal year, a 42 percent YoY decrease.
Consolidated earnings on a quarterly basis came in at Rs. 2.243 billion, a 63 percent YoY decline. The company declared a dividend of Rs. 8.00 per share in 2QCY24 (Rs. 19.00/share in 1HCY24) in conjunction with the results.
Regarding the fertilizer business, EFERT’s 2QCY24 earnings came in at Rs. 1.66 billion as opposed to Rs. 1.06 billion in SPLY, a 57% YoY increase. This was due to increases in the prices of urea and DAP of 59 and 15%, respectively, as well as a 16% YoY increase in DAP offtake.
Due to reduced PVC margins associated with higher gas prices, EPCL recorded a loss of Rs. 688 million in 2QCY24 as opposed to a net profit of Rs. 1.56 billion in SPLY.
FCEPL reported earnings of Rs. 588 million, up 75% year over year due to higher sales of dairy products and a 281bps gain in gross margins to 17.55 percent. In 2QCY24, ENGRO’s other income showed a YoY increase of 72%, which can be attributed to a spike in cash and cash balance income.
In comparison to the loss allowance on subsidiary receivable from the government of Rs. 72 million in 2QCY23, the company recorded a reversal of the loss allowance on subsidy receivable from the government in the amount of Rs. 177 million in 2QCY24.
In 2QCY24, the company recorded effective taxation of 59%, compared to 89% in 2QCY23. Along with the outcome, the company reaffirmed that thermal energy’s financial results (EPTL, EPQL, and SECMC) have been reported as discontinued operations since they have complied with IFRS-5’s requirements for “Non-Current Assets Held for Sale and Discontinued Operation.”
