Engro Corp’s profit ticks up 19.26% to Rs52.6b

Engro Corporation’s profit after tax rose 19.26% to Rs52.6 billion in 2021 owing to increase in sales and decline in finance cost.

According to a notice sent to the Pakistan Stock Exchange on Thursday, the company posted a profit of Rs44.4 billion in 2020.

Accordingly, the earnings per share of the enterprise rose from Rs43.57 in 2020 to Rs48.5 in 2021.

Alongside the result, the company announced a cash dividend of Rs1 per share.

“This is in addition to the interim dividend already paid at Rs24 per share,” it said.

During the year, topline of the firm witnessed a jump of 25.2% to Rs311.6 billion. The company had received Rs248.8 billion under this head in 2020.

Finance cost of the company contracted from Rs20.4 billion in 2020 to Rs17.3 billion last year, a contraction of 15.6%.

On a quarterly basis, the firm reported 7% decline in its profit to Rs12.08 billion during October-December 2021 against Rs13.1 billion in same period of 2020.

Topline Securities analyst Sunny Kumar said that the enterprise posted consolidated earnings per share of Rs8.28 during the period which was 29% lower year-on-year and 22% quarter-on-quarter.

“The result came lower than industry consensus primarily due to higher than expected other operating expenses,” he said.

During the quarter, sales of Engro Corporation rose 33% to Rs88 billion. The firm recorded sales of Rs66.3 billion in the corresponding quarter of 2020.

Published in The Express Tribune, February 18^th, 2022.

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