Engro Corp’s net earnings drop merely by 4% over the quarter

April 26, 2019 (MLN):  Engro Corporation Limited (ENGRO) has announced its financial results for the quarter ended on March 31st 2019, as per which the company's net profits after tax declined  merely by 4% to Rs 6.5 billion with EPS recorded at Rs 7.66 compared to Rs 6.8 billion (EPS: Rs8.01) in the same quarter last year.

Despite increase in company's top-line by 21%, the upsurge in cost of sales by 30% and administrative expenses by 52%, dragged the company's  profits before tax by 6%.

However,  decline in tax payments by 10% provided a  cushion to the earnings.

Moreover, the Board of Directors of the company announced an interim cash dividend for the quarter under review at Rs 7 per share i.e. 70%

Financial Results for the  Quarter Ended March 31st 2019 ('000 Rupees)

 

Mar-19

Mar-18

% Change

Revenue

                     40,647,358

                     33,524,875

21.25%

Cost of Sales

                  (28,645,147)

                  (21,966,894)

30.40%

Gross Profit

                     12,002,211

                     11,557,981

3.84%

Selling and distribution expenses

                     (1,740,448)

                     (1,839,444)

-5.38%

Administrative expenses

                     (1,344,168)

                        (883,906)

52.07%

Other income

                       2,347,832

                       2,639,711

-11.06%

Other operating expenses

                        (701,896)

                        (597,643)

17.44%

Operating profit

                     10,563,531

                     10,876,699

-2.88%

Finance cost

                     (1,515,108)

                     (1,223,125)

23.87%

Share of income from joint ventures & associates

                           409,732

                           416,051

-1.52%

Profit before taxation

                       9,458,155

                     10,069,625

-6.07%

Taxation

                     (2,893,228)

                     (3,232,263)

-10.49%

Profit after taxation

                       6,564,927

                       6,837,362

-3.98%

Earnings per share – basic and diluted (Rupees)

                                  7.66

                                  8.01

-4.37%

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Posted on: 2019-04-26T11:04:00+05:00

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