Engro Holdings reported a consolidated profit after tax of Rs. 107 billion for the latest financial year, with earnings per share rising to Rs. 46.20 compared to Rs. 26.78 last year.
On a more adjusted basis, which excludes this one-off gain, the owner’s share of profit stands at around Rs. 29 billion, presenting a more realistic picture of the company’s underlying performance.
However, the sharp increase in profit was largely driven by a one-time reversal of impairment on thermal assets rather than core business growth.
On a standalone basis, Engro’s profitability saw a significant decline. The company posted a profit of Rs. 253 million compared to Rs. 9.9 billion last year, with earnings per share dropping to Rs. 0.21 from Rs. 20.48.
This decline was mainly due to the transfer of key income-generating investments to DH Partners under a restructuring plan, along with reduced dividend income from Engro Corporation.
The company stated that its financial results continue to reflect the impact of major structural changes, including the formation of Engro Holdings, termination of agreements related to thermal energy assets, and consolidation of Deodar Towers.
It emphasized that changes in reported earnings are largely due to these structural adjustments rather than any fundamental weakness in its businesses.
The board has not announced a final dividend for the year. The company said it is prioritizing capital allocation toward a major investment in telecom tower infrastructure, which is expected to generate stable cash flows and long-term value for shareholders.
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