Engro Corporation’s profit rose by an impressive 74% to Rs 4.21 billion in the quarter that ended in June 2018 as compared to Rs 2.42 billion in the corresponding period last year.
The growth in profits comes amid impressive performance shown by its subsidiaries – Engro Polymer, Engro Fertilizers and Engro Powergen.
The surge in net sales is primarily attributed to the increase in EFERT’s and EPCL’s revenues (51%YoY and 31%YoY) during the period plus profitability in the food business.
It also saw an unexpected loss arising from its trading arm, Engro Vopak Terminal, as it reported a loss of Rs 1.8 billion.
Along with the result, the board of directors also announced an interim cash dividend of Rs 7 per share for the quarter. This is in addition to Interim Dividend already paid at Rs 5.
Earnings per share of the company increased to Rs 3.62 for the quarter as compared to Rs 1.67 in the same period of the corresponding year.
The net revenue for the quarter increased to Rs 38.20 billion, which was up by 28.79% from Rs 29.66 billion.
Cost of sales increased 28.34% to Rs 27.94 billion from Rs 21.77 billion. Selling and distribution expenses fell 13.13% to Rs 1.72 billion from Rs 1.98 billion.
Finance cost came down by 27% to Rs 1.04 billion from Rs 1.43 billion. The share of income from joint ventures and associates improved to Rs 445.81 million from Rs 364.59 million.
Engro Corporation also announced its half-year results where the company posted a profit after tax of Rs 6.09 billion as compared to Rs 3.77 billion in the same period last year, up by a massive 61%YoY.
The earnings were still below the market expectations. Gross margins of the company improved by 30% during 1HCY18 as compared to 28% in the corresponding period last year.
The company reduced the cost of goods sold by almost 33%, and also endured lower finance expenses.
Other income dropped by 11%, Engro still managed to make higher profits.
Engro’s script at the bourse closed at Rs 336.01, down by Rs 8.38 with a turnover of 1.54 million shares.