Pakistan’s premier conglomerate, Engro Corporation Limited (PSX: ENGRO) announced its financial results for the calendar year (CY) that ended on December 31, 2022.
According to the company’s results for CY22, it posted a consolidated profit after tax of Rs. 46.1 billion, which is 12.3 percent lower than Rs. 52.6 billion in CY21.
Engro Corporation’s standalone revenue increased from Rs. 21 billion in 2021 to Rs. 24 billion in 2022, exhibiting healthy growth of 14 percent. Higher revenue was primarily due to higher dividends received from Engro Polymer & Chemicals Limited (EPCL), Engro Fertilizers Limited (EFERT), and Engro Energy Limited (EEL) which, in turn, were driven by strong underlying business performance.
On a consolidated basis, Engro Corporation’s revenue grew by 14 percent to Rs. 356 billion in 2022 from Rs. 312 billion in 2021. The Company posted a PAT of Rs. 46 billion in 2022, which is 12.3 percent lower than Rs. 53 billion in 2021 on account of a Super Tax charge of 4 percent on retrospective and current year earnings and a one-off adjustment of Engro Powergen Thar Limited (EPTL) tariff true-up adjustment.
The PAT attributable to the shareholders decreased to Rs. 24 billion from Rs. 28 billion in 2022, translating to an EPS of PKR 42.23 per share (2021: Rs. 48.50 per share).
With reference to Super Tax imposition of 4% on retrospective year earnings and additional discriminatory Super Tax of 6% on selected sectors, the Group appealed before Sindh High Court (SHC) and the matter was decided in favor of the Group. Whilst having the support of our legal and tax advisors, the Group decided to maintain provision to the extent of 4% Super Tax.
ENGRO also announced a final cash dividend of Rs. 1 per share for the year. This is in addition to the Rs. 33 per share interim cash dividends already paid, bringing the cumulative payout to Rs. 34 per share.
