Pakistan’s premier conglomerate, Engro Corporation Limited (PSX: ENGRO) announced its financial results for the three months that ended on March 31, 2023 (1QCY23).
According to the company’s results for 1QCY23, it posted a consolidated profit after tax of Rs. 8.79 billion, which is 40.9 percent lower than Rs. 14.89 billion in 1QCY22.
Along with the result, the company announced an interim cash dividend of Rs. 40 per share (400%) for the quarter.
Engro Corporation’s standalone revenue for the first quarter was Rs. 6.4 billion – down by 21 percent, primarily due to lower dividends received from Engro Polymer & Chemicals Limited (EPCL) due to the reversal of the commodity cycle and increase in gas prices. Correspondingly, the Company posted a 12 percent decline in PAT of Rs. 6 billion in Q1 2023 against Rs. 6.9 billion in Q1 2022.
On a consolidated basis, Engro Corporation’s revenue grew by 10 percent to Rs. 97.3 billion in Q1 2023 from Rs. 88.3 billion in Q1 2022. The Company posted a PAT of Rs. 8.8 billion in Q1 2023, which is 41 percent lower than Rs. 14.9 billion in Q1 2022.
The PAT attributable to the shareholders is Rs. 5 billion, translating into an EPS of Rs. 8.18 per share (Q1 2022: Rs. 13.84 per share). The major variance was attributable to the macroeconomic headwinds resulting in commodity cycle reversal, lower DAP demand, and increasing cost pressures.
Resultantly, the other income of ENGRO depicted a growth of 72 percent YoY during 1QCY23, which is attributable to ascend in income from cash and cash balances. Meanwhile, the finance cost witnessed a massive jump of 117 percent YoY in 1QCY23 on account of higher interest rates and an increase in borrowings, according to Arif Habib Limited (AHL).
ENGRO also booked effective taxation at 35 percent during the quarter that ended on March 31st, compared to 28 percent last year. The taxation includes super tax imposed during the quarter on the profit before tax of 1QCY23.
The company reported earnings per share (EPS) of Rs. 8.18 in 1QCY23 compared to an EPS of 13.84 reported in the previous year.
At the time of filing, ENGRO’s scrip at the bourse was Rs. 310, up 5.93 percent or Rs. 17.34 with a turnover of 4,893,568 shares on Thursday.
