ENGRO’s bottom-line growth hampered by finance cost

August 20, 2019 (MLN): Engro Corporation Limited (ENGRO)’s half yearly profit increased by merely 3.9 as the company recorded the figure for period ended June 30, 2019, at Rs.11.5 billion while EPD logged in at Rs.11.93 per share.

As per the statement of financial results issued to the Pakistan Stock Exchange (PSX), ENGRO’s net revenue (Rs.85.9 billion) grew by 20% while the gross profit (Rs.24.9 billion) enhanced by 17%.

Moreover, the company’s non-core income (Rs.6.4 billion) rose by nearly 30% or Rs.1.4 billion while the share of income from joint ventures & associates leapt by another Rs.1.2 billion.

However, a sharp upsurge of 90% or Rs.2.2 billion in finance cost, along with higher expenses nearly nullified the positive impact of growing inflows.

In addition to this, ENGRO also announced an interim cash dividend at Rs.8 per share, i.e. 80% in addition to an interim dividend already paid at Rs.7 per share or 70%.

Consolidated Financial Results for the half year Ended June 30, 2019 ('000 Rupees)

 

Jun-19

Jun-18

% Change

Net revenue

          85,989,116

          71,733,077

19.87%

Cost of revenue

       (61,010,150)

       (50,385,012)

21.09%

Gross Profit

          24,978,966

          21,348,065

17.01%

Selling and distribution expenses

          (3,097,262)

          (3,236,519)

-4.30%

Administrative expenses

          (2,403,469)

          (1,780,847)

34.96%

Other income

            6,416,011

            4,971,619

29.05%

Other operating expenses

          (2,742,870)

          (2,110,442)

29.97%

Finance cost

          (4,643,921)

          (2,444,152)

90.00%

Share of income from joint ventures & associates

                690,187

             (501,605)

 

Profit before taxation

          19,197,642

          16,246,119

18.17%

Taxation

          (7,715,203)

          (5,191,198)

48.62%

Profit after taxation

          11,482,439

          11,054,921

3.87%

 

 

 (Restated)

 

Earnings per share – basic and diluted (Rupees)

                    11.93

                    10.57

12.87%

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Posted on: 2019-08-20T10:08:00+05:00

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