Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the nine months ended September 2018.
The company announced a consolidated profit-after-tax (PAT) of Rs 17.85 billion, up by 53.30% as compared with Rs 11.64 billion during the comparative period last year.
It concluded the first nine months of 2018 with revenue of Rs 114.64 billion, up by 32.64% against Rs 86.43 billion for the similar period last year. Increase was primarily driven by improved fertilizers (EFERT) and petrochemicals (EPCL) performance up by 81% and 20%.
The jump in net sales is attributable to increase in Engro Fertilizers and Engro Polymer’s revenues respectively.
Fertilizer business showed a healthy growth on the back of improved urea prices coupled with lower discounts. Similarly the petrochemical business was improved due to cost efficiencies.
After the cost adjustments, the gross profits rose to Rs.35.46 billion , which is up by 48.07% as compared with Rs 23.94 billion in the last year.
Earnings per share of the company were increased to Rs18.99 from Rs13.20 in the period under view.
An interim cash dividend at Rs.7 per share (70%) was also recommended, in addition to an interim dividend of Rs.12 per share i.e. 120% that is already paid.
Engro posted higher than estimated administrative cost during the period with other operating expenses also increasing. The Share of income was down from last year because of the poor food business of the company.
Engro’s script at the bourse was closed at Rs 300.68, down by Rs 3.77 and with a turnover of 1,323,100 shares on Friday.