October 19, 2022 (MLN): Engro Corporation Limited (ENGRO), one of Pakistan’s largest conglomerates with the company’s business portfolio in four verticals, which include food & agri, petrochemicals, energy & infrastructure, and connectivity has reported a 24% YoY decline in its net profits to Rs30.70 million (EPS: Rs26.78) for the period of nine months ended on September 30, 2022.
However, on a QoQ basis, the company’s profitability improved by 31% YoY to record Rs13.89mn compared to Rs11.39mn in the same quarter last year.
This increase in ENGRO’s profitability is primarily attributable to higher reported profitability by the Fertilizers and Petrochemicals businesses.
Along with the result, the company announced an interim cash dividend for the third quarter that ended September 30, 2022, at Rs10 per share i.e. 100%. This is in addition to the interim cash dividend already paid at Rs23 per share i.e. 230%.
The revenue of the company jumped by 20.20% YoY to Rs268.74mn in 9MCY22 compared to Rs223.6mn in 9MCY1.
On the expenses front, the selling and distribution expenses remained flat at Rs5.4mn while administrative expenses recorded a significant increase of 72% YoY in 9MCY22.
Similarly, the finance cost of the company moved up by 68.51% YoY to Rs19.11mn owing to the increase in policy rates.
Among other line items, other income increased by 50.39% YoY to Rs13.5mn. Meanwhile, the share of income from associates dropped to Rs2mn, down by 13.22% YoY.
The tax expenses of the company ballooned by 77% YoY to Rs24.43mn, hitting the company’s profitability.
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