Engro Corporation Limited (ENGRO) announced its financial results for Q1 2024, posting a consolidated net profit of Rs. 5.719 billion compared to Rs. 4.647 billion in 1QCY23, up by 23 percent YoY.
Higher profitability on account of higher fertilizer sales, improved margins, efficient plant operations, higher earnings from dollar-denominated businesses, and efficiencies derived through cost optimization.
Alongside the result, the company announced an interim cash dividend of Rs. 11.00/share in 1QCY24.
On the fertilizer business front, EFERT’s earnings settled at Rs. 10.78 billion, surging by 2x YoY during 1QCY24 owed to a hike in urea and DAP prices by 66 percent and 22 percent YoY, respectively, a massive jump in DAP offtake by 85 percent YoY, and fall in finance cost amid reduction in short term borrowings, said Arif Habib Limited in a brief review.
Engro Polymer & Chemicals Limited (EPCL) registered a loss of Rs. 901 million (LPS: Rs. 0.99) compared to net profit of Rs. 1.18 billion (EPS: PKR 1.30) due to higher gas prices and subdued PVC margins.
The other income of ENGRO depicted a decline of 9 percent YoY during 1QCY24, which is attributable to a fall in income from cash and cash balances.
The finance cost was reduced by 7 percent YoY in 1QCY24 on account of a decrease in short-term borrowings.
The company booked a reversal of the loss allowance on subsidy receivable from Govt. amounting to Rs. 58 million in 1QCY24 against the loss allowance on subsidiary receivable from the government of Rs. 432 million in 1QCY23.
Alongside the result, the company disclosed that the financial results of thermal energy entities (EPTL, EPQL, and SECMC) have been reported as discontinued operations given that these companies have met the classification criteria of IFRS-5 related to “Non-Current Assets Held for Sale and Discontinued Operation”.
Engro Corp posted earnings per share of Rs. 10.66 per 1QCY24 compared to an EPS of Rs. 8.66 in the same period last year.
Its scrip at the bourse closed at Rs. 362.72, down 0.62 percent or Rs. 2.26 with a turnover of 467,124 shares on Thursday.
