KARACHI: Engro Corporation Limited (ENGRO), one of the largest conglomerates in Pakistan, announced its financial results for the first half of the year 2023 (1HCY23), showing a consolidated profit after tax of PKR 10,574mn (EPS: PKR 19.70), up by 43% YoY.
The company also declared a cash dividend of PKR 2.00/share in the second quarter of the year (2QCY23), taking the total dividend payout to PKR 42.00/share in 1HCY23.
The impressive performance of ENGRO was driven by the strong contributions from its subsidiaries and joint ventures, especially from the Thar business (EPTL & SECMC) and Elengy business, which posted profits of PKR 4,479mn and PKR 752mn, respectively, in 2QCY23.
The company also benefited from higher other income from cash and cash balances, which grew by 22% YoY in 2QCY23.
Among the subsidiaries, Engro Fertilizers Limited (EFERT) reported a profit of PKR 1,060mn (EPS: PKR 0.79) in 2QCY23, compared to a loss of PKR 98mn (LPS: PKR 0.07) in the same period last year, owing to higher urea and DAP prices and lower deferred tax liability adjustment.
Engro Polymer & Chemicals Limited (EPCL) posted a net profit of PKR 1,562mn (EPS: PKR 1.72) in 2QCY23, down by 33% YoY, due to lower international PVC margins, higher finance costs, and hike in gas prices.
Engro Powergen Qadirpur Pakistan Limited (EPQL) recorded a profit after tax of PKR 783mn (EPS: PKR 2.42) in 2QCY23, up by 3.1x YoY, owing to higher period weighting factor applied to capacity payments. Frieslandcampina Engro Pakistan Limited (FCEPL) posted a bottom-line of PKR 336mn (EPS: PKR 0.44), up by 36% YoY in 2QCY23, on the back of growth in gross margins and sales volumes.
The company’s finance cost increased by 66% YoY in 2QCY23 on account of hike in interest rates. The company also booked effective taxation at 52% in 2QCY23 vis-à-vis 88% in 2QCY22. The taxation during the quarter includes an additional 6% super tax levied on the profit before tax of CY22 and 1HCY23, respectively.
ENGRO is one of the leading players in Pakistan’s energy, fertilizer, petrochemicals, foods, and terminal businesses. The company has a diversified portfolio of investments in various sectors and has been consistently delivering value to its shareholders and stakeholders. ENGRO’s share price closed at PKR 1,100 on Wednesday, August 16, 2023.