Engro Corporation’s profit doubles to Rs9.6b

Company announces dividend of Rs8 per share for Apr-Jun quarter

Engro Corporation’s profit nearly doubled to Rs9.6 billion in the quarter ended June 30, 2020 mainly due to profit contribution from Thar business.

The company had reported a consolidated after-tax profit of Rs4.8 billion in the same period of previous year, according to a notice sent to the Pakistan Stock Exchange on Wednesday.

The board of directors also announced an interim cash dividend of Rs8 per share ie 80% for the quarter. “This is in addition to the interim dividend already paid at Rs6 per share ie 60%,” the company notification stated.

Earnings per share came in at Rs9.97 during the quarter under review compared to Rs4.86 in the same period of previous year.

Revenues of the company surged 41% to Rs62.2 billion in the April-June 2020 quarter from Rs44.1 billion in the corresponding period of previous year.

Other income dipped 12% to Rs3.6 billion while finance cost of the company grew 66% to Rs5.2 billion during the quarter under review.

“Among subsidiaries, Engro Fertilisers Limited’s earnings were up by 22% year-on-year to Rs3,886 million during 2Q2020 due to 52% higher urea sales year-on-year to 696,000 tons,” stated Topline Securities’ analyst Sunny Kumar.

Kumar added, “However, Engro Polymer earnings were down 93% year-on-year to Rs30 million compared to Rs452 million in 2Q2019 due to decline in PVC and caustic sales amid countrywide lockdown due to Covid-19 outbreak and decline in gross margins by 12.1 percentage points to 9.8%.”

Meanwhile, Engro’s earnings jumped 36.6% to Rs15.5 billion in the half year ended June 30, 2020.

Earnings per share increased to Rs15.73 during the period under review from Rs11.82 in the same period of previous year.

Engro Corporation’s share price rose Rs5.29 or 1.83% to trade at Rs294.49 with a volume of 1.6 million shares on Wednesday.

Published in The Express Tribune, August 20^th, 2020.

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