Engro Corporation profit plunges 54% in Q3

October 29, 2024 (MLN): Engro Corporation Limited (PSX: ENGRO) recorded a consolidated profit after tax of Rs10.38 billion [EPS: Rs10.66] during the quarter ending September 2024.

That was down 53.7% from the profit of Rs22.44bn [EPS: Rs22.73] in the same period last year (SPLY) as its revenue fell while cost of sales jumped.

The board of the company recommended an interim cash dividend for the nine months ended September 30, 2024 at Rs5 per share i.e. 50%.

This is in addition to the interim cash dividend already paid at Rs19 per share i.e. 190%.

The company's revenue fell by 2.5% to Rs100.13bn as compared to Rs102.69bn in SPLY.

Moreover, the cost of sales rose by 5.7%, worsening the gross profit by 21.4% to Rs24.47bn in Q3 CY24.

The gross margins fell to 24.4% as compared to 30.3% in SPLY.

During the period under review, other income increased by 32.6% to stand at Rs3.02bn in Q3 CY24 as compared to Rs2.27bn in SPLY.

On the expense side, the company's selling and distribution expenses fell 48.1% from a year ago to Rs1.45bn, administrative expenses rose 29.2% to Rs3.16bn, and other operating expenses fell 44.6% to Rs1.33bn.

The company’s finance cost rose by 41.0% and stood at Rs5.67bn as compared to Rs4.02bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs7.41bn against an expense paid worth Rs9.67bn in the corresponding period of last year, a fall of 23.4%.

This translates to an effective tax rate of 43.7% as compared to 43.3% in SPLY.

Amount in thousand except for EPS

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