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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