Engro Corporation Limited (PSX: ENGRO) has reported its financial results for the first nine months of the calendar year 2024 (9MCY24), revealing a consolidated profit after tax of Rs. 11.983 billion, translating to an earnings per share (EPS) of Rs. 22.33. This reflects a significant decline of 48% year-on-year (YoY). For the third quarter (3QCY24), the consolidated earnings dropped to Rs. 5.722 billion (EPS: Rs. 10.66), marking a 53% YoY decrease.
In conjunction with the financial results, Engro announced a dividend of Rs. 5.00 per share for 3QCY24, bringing the total dividend for 9MCY24 to Rs. 24.00 per share. Revenue from continued operations saw a 12% increase, reaching Rs. 279 billion, up from Rs. 250 billion during the same period last year.
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In the fertilizer sector, Engro Fertilizers Limited (PSX: EFERT) reported earnings of Rs. 8.554 billion (EPS: Rs. 6.41) for 3QCY24, a decline of 11% YoY. The decrease is attributed to a 33% drop in urea offtake and a 14% decline in DAP sales, alongside increased finance costs due to rising short-term borrowings.
Engro Polymer & Chemicals Limited (EPCL) experienced a loss of Rs. 698 million (loss per share: Rs. 0.77), compared to a net profit of Rs. 2.642 billion (EPS: Rs. 2.91) in the previous year, primarily due to higher gas prices and weak PVC margins. Conversely, FCEPL recorded earnings of Rs. 766 million (EPS: Rs. 1.00), tripling YoY, driven by a 190 basis point increase in gross margins to 15.40% thanks to higher dairy product sales.
The company’s other income rose by 53% YoY in 3QCY24, attributed to a significant increase in income from cash and cash balances. However, finance costs surged by 41% YoY, reflecting increased short-term borrowings.
Engro Corporation also reported a gain of Rs. 464 million on allowance for subsidy receivables from the government in 3QCY24, compared to just Rs. 1 million in the same quarter of the previous year. The effective tax rate for 3QCY24 was recorded at 39.95%, slightly down from 40.54% in 3QCY23.
As of the latest market update, ENGRO’s share price stood at Rs. 310.71, down 1.47% or Rs. 4.63, with a trading volume of 345,206 shares on Tuesday.
