Engro Corporation announced its financial results for the nine months ended September 30, 2019. The Company posted a consolidated profit-after-tax (PAT) of Rs. 21.90 billion, up by 22.70% as compared with a profit of Rs. 17.85 billion in the same period last year.
The earnings are higher because of the massive increase in other income. It was nearly up by 60.50% to Rs. 10.30 billion as compared to Rs. 6.42 billion. Engro Corporation reported net revenue of Rs. 149.40 billion in the nine-month period, which was 30.3% higher than Rs. 114.6 billion in the previous year. The costs of the company were at Rs. 104.91 billion, up by 31.33% as compared to Rs. 79.88 billion in the same period last year.
Engro Corporation had posted a profit of Rs. 10.4 billion for the quarter ended September 30, 2019, up by 53% from Rs. 6.8 billion in the same period of the previous year.
According to Topline Securities, among the subsidiaries, Engro fertilizer Limited’s (EFERT) earnings had declined by 35% YoY to Rs. 3.32 billion during Q3 2019 because of a decrease in sales volume, higher gas cost, and a one-off deferred tax charge.
However, profit from the chemical business increased by 17% year-on-year to Rs. 1.29 billion in Q3 2019 due to a rise in PVC margins and other income, said the report. Also, the finance cost of the company jumped by 156.6% to Rs. 9.36 billion in the nine months compared to Rs. 3.6 billion in the previous year.
The administrative expenses of the company grew to Rs. 4.5 billion from Rs. 4 billion in the previous year.
The unconsolidated administration expenses of the company soared during the period because of the expenditures incurred on the creation of ‘Engro Leadership Academy’ for the training of employees and other feasibility related expenses.
Earnings per share stood at Rs. 22.61 in Jan-Sept 2019 compared to Rs. 17.27 in the same period last year.
The result announcement was accompanied by an interim cash dividend of Rs. 8.0 per share, taking the cumulative 9 month period earnings payout to Rs. 23.00 per share.