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.

 

Consolidated Financial Results for the Nine months ended September 30th, 2020 (Rupees)

 

Sep-20

Sep-19

% Change

Revenue

                  182,505,534

                  147,492,896

23.74%

Cost of Sales

                (127,796,052)

                (103,251,377)

23.77%

Gross Profit

                     54,709,482

                     44,241,519

23.66%

Selling and distribution expenses

                     (5,528,201)

                     (5,009,066)

10.36%

Administrative expenses

                     (4,612,862)

                     (3,958,139)

16.54%

Other income

                       8,895,498

                     10,304,335

-13.67%

Other operating expenses

                     (4,030,339)

                     (4,257,314)

-5.33%

Finance cost

                  (13,942,756)

                     (9,361,659)

48.93%

Share of income from joint ventures & associates

                       1,947,034

                       1,162,624

67.47%

Profit before taxation

                     37,437,856

                     33,122,300

13.03%

Taxation

                     (6,365,322)

                  (11,420,188)

-44.26%

Profit after taxation

                     31,072,534

                     21,702,112

43.18%

Earnings per share – basic and diluted (Rupees)

                               31.84

                               22.43

41.95%

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Posted on: 2020-10-23T12:28:00+05:00

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