PHOTO: ENGRO
KARACHI: Despite an economic slowdown and the KSE-100 index slumping every other day at the stock market, Engro Corporation surprised its investors by surpassing expectations and declaring a dividend of Rs8 per share.
The company’s consolidated profit rose 16% to Rs4.9 billion in the quarter ended June 30, 2019 compared to earnings of Rs4.2 billion in the corresponding period of the preceding year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Accordingly, the company posted earnings per share (EPS) of Rs4.97 in the quarter under review against Rs3.29 in the same quarter of last year.
Engro Corp recorded turnover of Rs45 billion during the Apr-Jun 2019 quarter against Rs38 billion in the same quarter of 2018.
“The company’s revenue increased more than 18% but its cost also soared at the same time, undermining profit margins,” said Topline Securities’ analyst Sunny Kumar. The conglomerate’s cost of sales increased to Rs32 billion in the Apr-Jun 2019 quarter against Rs28 billion in the corresponding quarter of last year.
Gross profit of the company increased from Rs10 billion last year to Rs13 billion in the period under review.
Half-year result
The company recorded a net profit of Rs11.5 billion for the half year ended June 30, 2019, up 3.87% compared to Rs11.1 billion in the same period of previous year.
In Jan-Jun 2019, the company reported EPS of Rs11.93 against Rs10.57 in the same period of previous year.
Net sales were recorded at Rs86 billion in the six months ended June 2019 as opposed to Rs71.7 billion in the same period of 2018, an increase of 19%.
Cost of sales rose to Rs61 billion in Jan-Jun 2019 against Rs50.4 billion in the same period of 2018. Gross profit was recorded at Rs25 billion against Rs21.4 billion last year.
During the day, the company’s stock price increased Rs11.73 to close at Rs246.51 with trading in 864,200 shares. The benchmark KSE-100 index closed at 30,419.22 points after a gain of 856.8 points or 2.82%.
Published in The Express Tribune, August 21st, 2019.
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