Engro Corporation reported a turnaround in its profit mainly on the back of strong quarterly performance by its fertiliser business as the company announced its financial results for the first nine months of 2013 on Tuesday.
Pakistan’s largest private sector conglomerate posted a net profit of Rs5.9 billion or Rs11.37 per share in nine months ended September 2013, turning around from a loss of Rs443 million or Rs0.87 per share in the corresponding period of 2012.
Revenues for the period increased to Rs107 billion, up 30% against Rs82 billion in the same period last year.
The results, according to the analysts The Express Tribune spoke to, were in line with market expectations.
The return to profit is mainly attributable to the fertiliser business as the company increased production and posted better results, Engro Corp said in a press release.
The company boosted its quarterly profit by 80 times, year-on-year, to Rs2.4 billion for the July-September period. The strong quarterly results were due to additional gas supply the company had been receiving since the end of July, Elixir Securities Head of Research Azfar Naseem said. As a result, both fertiliser plants remained operational in the quarter.
The company’s fertiliser business – Engro Fertilizers – saw its urea market share increase to 25% against 16% in the same period last year. It registered after-tax profit of Rs3.2 billion for nine months ended September 2013 against a loss of Rs2.9 billion in the corresponding period of last year.
Engro Polymer’s revenues and profit grew substantially and other subsidiaries also had an improved performance except for a fall in revenues of Engro Foods.
In the first nine months of 2013, the food business registered a decrease of 4.7% in revenues, driven by a general slowdown in consumer demand and due to distribution issues in certain cities, the company said in its statement.
Engro’s petrochemicals business – Engro Polymer & Chemicals – achieved revenues of Rs18 billion in nine months compared to Rs15 billion in the comparable period last year, the statement said.
After-tax profit for the period was Rs552 million compared to Rs83 million in the same period last year.
Published in The Express Tribune, October 30th, 2013.
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