Engro earns Rs21.5bn profit in 1HCY23

August 17, 2023 (MLN): Engro Corporation Limited (PSX: ENGRO) experienced an increase of 27.73% YoY in its profitability, clocking in its profit after tax at Rs21.47 billion [EPS: Rs19.12] in 1HCY23 as compared to a profit of Rs16.81bn [EPS: Rs12.87] in the same period last year (SPLY).

Contrary to the street expectations of a Rs10-35 dividend, the company announced an interim cash dividend of Rs2 per share, i.e. 20%, for the second quarter ended June 30, 2023.

This is in addition to the interim cash dividend already paid at Rs40 per share i.e. 400%.

Going by the results, the company's top line grew by 14.10% YoY to Rs202.48bn as compared to Rs177.45bn in SPLY.

The cost of sales rose by 14.59% YoY but was lesser than proportionate to the sales increase, which improved the gross profit by 13.00% YoY to Rs61.22bn in 1HCY23.

Moreover, during the review period, other income went up by 42.89% YoY to stand at Rs13.75bn in 1HCY23 as compared to Rs9.62bn in SPLY.

On the expense side, the company observed a rise in distribution and selling expenses by 17.80% YoY to clock in at Rs5.93bn, while other expenses fell by 49.54% YoY to Rs3.24 bn during the review period.

The company’s finance costs surged by 87.44% YoY and stood at Rs22.5bn as compared to Rs12bn in 1HCY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs18.3bn against the Rs20.28bn paid in the corresponding period of last year, depicting a decline of 9.76% YoY.

Amount in thousand except for EPS

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