Engro Corp Posts a 20% Higher Revenue in H1 2019

Engro Corporation announced its financial results for the half-year ended June 30, 2019. The Company posted a consolidated profit-after-tax (PAT) of Rs. 11.48 billion, up by 3.90% as compared with a profit of Rs 11.05 billion in the same period last year.

The increase in profits was due to the improvement in the Fertilizers and Chemical businesses of the company. According to Foundation securities, the rise in profits was due to the increase in profitability of Engro Vopak, trading terminal business, against loss posted last year due to tax adjustments.

The net sales of the company surged to Rs. 85.98 billion, which showed a growth of 19.9% as compared with Rs. 71.73 billion. The gross profit of the company grew by 17% to Rs 24.97 billion.

The unconsolidated administration expenses of the company soared up during the period because of the expenditures incurred on the creation of ‘Engro Leadership Academy’ for the training of the employees and other feasibility related expenses stated Topline securities in its report.

The share of income from joint ventures and associates was posted at Rs. 1.2 billion from a loss of Rs. 501 million. However, the finance cost was increased sharply by 90% to Rs. 4.64 billion as compared with Rs 2.24 billion of last year.

The result announcement was accompanied by an interim cash dividend of Rs. 8.0 per share taking the cumulative 1HCY19 earnings payout to Rs. 15.00 per share.

At the time of filing this report, ENGRO’s shares at the exchange were trading at Rs. 246.51, up by Rs. 11.73 or 5%(Upper circuit breaker) with a turnover of 864,200 shares.

Consolidated Financial Results for the half-year ended June 30, 2019 (Amounts in thousands except earnings per share)
	Rs        Jun-19	Rs 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 tax	19,197,642	16,246,119	18.17%
Taxation	(7,715,203)	(5,191,198)	48.62%
Profit after tax	11,482,439	11,054,921	3.87%
		(Restated)
Earnings per share – basic and diluted (Rupees)	11.93	10.57	12.87%