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)
Cost of Sales
Selling and distribution expenses
Other operating expenses
Share of income from joint ventures & associates
Profit before taxation
Profit after taxation
Earnings per share – basic and diluted (Rupees)
Copyright Mettis Link News