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.
| Consolidated (un-audited) Financial Results for half-year ended 30 June, 2023 | |||
|---|---|---|---|
| June 23 | June 22 | % Change | |
| Sales | 202,481,972 | 177,454,754 | 14.10% |
| Cost of sales | (141,265,444) | (123,281,911) | 14.59% |
| Gross Profit | 61,216,528 | 54,172,843 | 13.00% |
| Distribution and selling expenses | (4,035,191) | (3,425,574) | 17.80% |
| Administrative expenses | (5,934,140) | (4,729,283) | 25.48% |
| Other losses | (1,089,743) | (1,390,693) | -21.64% |
| Other Income | 13,751,246 | 9,623,415 | 42.89% |
| Other expenses | (3,244,902) | (6,430,839) | -49.54% |
| Finance cost | (22,496,085) | (12,001,936) | 87.44% |
| Share of income from joint venture and associates | 1,605,232 | 1,272,119 | 0.00% |
| Profit before taxation | 39,772,945 | 37,090,052 | 7.23% |
| Taxation | (18,298,594) | (20,277,549) | -9.76% |
| Profit from continuing operations | 21,474,351 | 16,812,503 | 27.73% |
| Profit from discontinued operations | – | 71 | – |
| Net profit for the period | 21,474,351 | 16,812,574 | 27.73% |
| Basic and diluted earnings/ (loss) per share | 19.12 | 12.87 | – |
Amount in thousand except for EPS
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Posted on: 2023-08-17T09:40:05+05:00
