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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