Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO), has announced its financial results for the first half of the year ending June 30, 2022.
According to the company’s results for the half year, it posted a profit of Rs. 16.8 billion in 1H 2022, which is 42 percent lower than Rs. 29.1 billion in 1H 2021.
On a consolidated basis, Engro Corporation’s revenue grew by 27 percent to Rs. 177.5 billion in 1H 2022 from Rs. 139.3 billion in 1H 2021. The PAT attributable to the shareholders is Rs. 7.4 billion, translating into an EPS of PKR 12.87 per share (1H 2021: PKR 29.60 per share).
Despite organic revenue growth, the imposition of super tax on current and prior year earnings weighed on the conglomerate’s consolidated profitability.
Engro Corporation’s standalone revenue increased from Rs. 8.6 billion in 1H 2021 to Rs. 16.6 billion in 1H 2022, exhibiting a substantial growth of 92 percent. Higher revenue was primarily due to higher dividends received from Engro Polymer & Chemicals Limited (EPCL) and Engro Fertilizers Limited (EFERT) which, in turn, were driven by strong underlying business performance.
Resultantly, the company achieved a 29 percent higher profit after tax (PAT) of Rs. 12.5 billion in 1H 2022 against Rs. 9.7 billion in 1H 2021, translating into an earning per share (EPS) of Rs. 21.66 per share (2021: Rs. 16.81 per share).
Lastly, Engro Corporation announced an interim cash dividend of PKR 11 per share for the year. This is in addition to the PKR 12 per share dividend that has already been announced during the year, bringing the cumulative payout to PKR 23 per share.