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CPI Preview: Inflation to fall below 14% YoY in May

EPQL’s profit surges by 33.4% YoY to Rs585m in 3QFY24

Engro Powergen share acquisition revised with inclusion of different entities
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April 16, 2024 (MLN): Engro Powergen Qadirpur Limited (PSX: EPQL) experienced a rise of 33.39% YoY in its earnings in 3QFY24, clocking in its profit after tax at Rs584.64 million [EPS: Rs1.81], compared to a profit of Rs438.31m [EPS: Rs1.35] in the same period last year (SPLY).

The company achieved this earnings growth primarily through higher net finance income, despite a contraction in sales revenue by 8.64% year-over-year to Rs3.09 billion, compared to Rs3.38bn in the same period last year.

The cost of sales also decreased by 9.15% year-over-year, but since the decline was lower than proportionate to the sales decrease, the gross profit worsened by 5.57% YoY to Rs456.52m in 3QFY24.

On the expense side, the company observed a rise in Administrative expenses by 44.16% YoY and other expenses by 42.82% YoY to clock in at Rs102.56m and Rs3.91m respectively during the review period.

Analyzing further, EPQL's other income plunged by 89.55% YoY and stood at just Rs0.22m in 2023 as compared to Rs2.08m in SPLY.

The net finance income, the main contributor behind the improved quarter spiked to Rs237.61m in 3QFY24, against the Rs28.49m inflow through financing recorded in 3QFY23.

On the tax front, the company paid a higher tax worth Rs3.23m against the Rs1.81m paid in the corresponding period of last year, depicting a rise of 78.74% YoY.

In a recent development concerning EPQL, Engro Energy Limited (EEL) has entered into definitive agreements with Liberty Power Holding (Pvt.) Limited and other parties acting in concert for the sale of its entire stake in EPQL, Engro Powergen Thar (Private) and Sindh Engro Coal Mining Company Limited.

Accordingly, EEL will sell its entire stakeholding of 68.9% in EPQL for Rs7.5bn.

Interim Financial Results for Quarter ended 31 March, 2024 (Rupees in '000)
  March 24 March 23 % Change
Revenue 3,088,186 3,380,286 -8.64%
Cost of sales (2,631,671) (2,896,859) -9.15%
Gross Profit 456,515 483,427 -5.57%
Administrative expenses (102,562) (71,144) 44.16%
Other Income 217 2,077 -89.55%
Other expenses (3,909) (2,737) 42.82%
Net Finance income 237,610 28,491 733.98%
Profit before taxation 587,871 440,114 33.57%
Taxation (3,228) (1,806) 78.74%
Net profit for the period 584,643 438,308 33.39%
Basic earnings/ (loss) per share 1.81 1.35

Amount in thousand except for EPS

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Posted on: 2024-04-16T13:40:32+05:00