Engro Corporation reports 43% higher profits during 9MCY20

October 23, 2020 (MLN): Engro Corporation Limited (ENGRO) has posted consolidated net profits of Rs 31 million for the period of 9MCY20 which was 43% higher than the profits of Rs 21.7 million reported in the corresponding period last year.

This reflected in company’s earnings per share which exhibited an increase of 42% YoY from Rs 22.43 to Rs 31.84.

In conjunction with the results, Engro also announced cash dividend of Rs 10 per share (100%) for the 3QCY20 on the back of payouts from EFERT and EVTL. This was in addition to the interim dividend already paid at Rs 14 per share (140%) which takes 9MCY20 DPS to Rs 24 per share.

Due to the higher sales by EFERT and EPCL, and higher revenues from EPTL, EPQL and Elengy business, the company witnessed a jump of 23.7 YoY in overall revenues from Rs 147.5 million to Rs 182.5 million. This caused the gross margins of the company to remain stable at 30% during the period under review.

On the cost side, the selling cost went up by 10.3% YoY from Rs 5 million to Rs 5.5 million. Moreover, administrative costs rose by 16.5% YoY to Rs 4.6 million.  

The major blow to the company’s financial performance was higher finance cost which ballooned by 49% YoY from Rs 9.3 million to Rs 13.9 million.

Meanwhile, the other highlight is the Share of income from joint ventures & associates, which surged by 67.47% YoY from Rs 1.1 million to Rs 1.9 million.

With regards to taxes, the company booked lower effective tax rate of 17% compared to 34% reported in the same period last year.

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