Engro Corp sees a 45% growth in earnings during 2020

February 18, 2021 (MLN): Engro Coporation Limited has posted earnings of Rs. 44.3 billion for the year ended December 31, 2020, i.e. around 45% higher than the profits recorded in the previous year.

The Earnings per share for the aforesaid period amounted to Rs. 43.57, which is nearly 52% higher than the EPS of previous year.

The company also announced a final Cash Dividend of Rs. 2 per share i.e. 20%. This is in addition to the interim dividend already paid at Rs. 24 per share i.e. 240%.

The improvement in the company’s earnings was brought about by the performance of some its subsidiaries, especially Engro Polymer and Chemicals Limited as it posted net profits of Rs 5.73 billion, depicting a significant increase of 55% Sas compared to net profits of Rs 3.70 billion in the same period last yea, on account of higher other income and lower cost of sales.

Similarly, Engro Fertilizer Ltd posted a growth of 8% in its earnings owing to higher DAP prices, lower finance cost and income tax. However, the company’s performance was no up to the mark due to decline in revenue caused by lower volumetric sale of fertilizers.

On the other hand, Engro Powergen Qadirpur Limited reported a 39% decline in net profits during CY20, to Rs 2.1 billion from Rs 3.4 billion reported in CY19, owing to lower power dispatch.

Engro Corp also benefited from a rise in its other income by 30%, as well as decline in non-core expenses by 21.8%. Apart from this, the share of income from joint venture and associates went up by over 2.4x, giving futher boost to bottom-line earnings.

While the company saw a 39% increase in finance cost during the year, the impact of it was somewhat mitigated by a 42.5% decline in income tax expense.

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