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Engro Corporation July-September profit up 50pc

Business

October 24, 2020

KARACHI: Engro Corporation Limited profit went up 50 percent to Rs15.543 billion for the quarter ended September 30, 2020, translating into earnings per share (EPS) of Rs16.12, a bourse filing said on Friday.

It earned Rs10.338 billion with EPS of Rs10.61 in the corresponding quarter ended September 30, 2019, notice to the Pakistan Stock Exchange (PSX) said. The company announced interim cash dividend for the quarter ended September 30, 2020 at Rs10/share, which was equivalent to 10 percent. This was in addition to interim cash dividend already paid at Rs14/share, equivalent to 140 percent.

Brokerage Arif Habib Limited in their research note said Engro Fertilizers Limited earnings arrived at Rs7.034 billion with EPS of Rs5.27, depicting a hefty growth of 111 percent YoY in Q3CY20 from Rs3.326 billion in the same quarter last year. It was on account of 35 percent and 95 percent jump in Urea and DAP sales, respectively.

Moreover, bottom-line of Engro Polymer and Chemicals Limited settled at Rs1.881 billion with EPS of Rs2.07 in Q3CY20, up 48 percent YoY, on account of higher volumetric sales of PVC to 48,000 tons against 44,000 tons in the same period last year. However, 9MCY20 profitability plummeted by 25 percent YoY due to gas leakage at the plant site tagged with lockdown after spread of COVID-19, the brokerage house added.

Furthermore, Engro Powergen Qadirpur posted a profit of Rs722 million (EPS: Rs2.23) in Q3CY20 versus Rs743 million (EPS: Rs2.29) in the same period last year, down by 3.0 percent YoY given decline in sales by 28 percent YoY. This took the net profit in 9MCY20 to Rs2.031 billion (EPS: Rs6.27), down by 22 percent YoY.

The contribution from Thar business (EPTL and SECMC) and Elengy business was estimated to be Rs2.724 billion and Rs718 million, respectively during Q3CY20.

The company booked effective taxation at 11 percent in the July-September quarter this year vis-à-vis 27 percent in Q3CY19.