Engro Corp’s Profit Up 61% to Rs. 22.4 Billion in Q3 2023

Engro Corporation Limited (PSX: ENGRO) reported a consolidated profit of Rs. 22.39 billion, up 61.1 percent year-on-year (YoY) in 3QCY23.

This takes 9MCY23 consolidated earnings to Rs. 43.8 billion, up 42.8 percent YoY. Along with the result, ENGRO also announced an interim cash dividend of Rs. 4 per share in 3QCY23. This is in addition to the dividend already paid at Rs. 42 per share.

ENGRO reported a revenue of Rs. 136.8 billion, up by 49.9 percent YoY in 3QCY23 due to higher top lines posted by all group entities, especially EFERT and EPCL, according to a brief commentary by AKD Securities Limited.

Revenues of EFERT, EPCL, and FCEPL reflected healthy topline growth of 72.4 percent, 31.4 percent, and 10 percent, respectively. Healthy margins and normalized tax for the quarter afforded a higher bottom line for EFERT and EPCL lending support to the Group’s bottom line.

Gross margins during 3QCY23 clocked in at 32.5 percent versus 29.2 percent in SPLY.

Selling and distribution expenses were up by 35.4 percent YoY. Meanwhile, financial charges went up by 67.6 percent YoY during Q3 mainly due to lingering high-interest rates, however, this benefitted the company by translating to higher other income (12.3 percent/70.8 percent QoQ/YoY).

Share of profits from associates and joint ventures showed a marginal decline of 14.4 percent QoQ to Rs. 1.5 billion against Rs. 1.7 billion last quarter but rose by 80.9 percent YoY, which AKD said was owing to consistent results by VOPAK and SECMC.

ENGRO paid Rs. 10.6 billion in taxes in Q3 2023 compared to Rs. 4.1 billion in SPLY.

The company posted earnings per share (EPS) of Rs. 22.68 per share from continuing operations for 3QCY23 and an EPS of Rs. 41.56 for 9MCY23.

The company’s scrip at the bourse closed at Rs. 272.88, down 1.49 percent or Rs. 4.14 with a turnover of 631,364 shares on Tuesday.