Engro Corporation Limited (ENGRO) announced its 1QCY24 financial result, posting a consolidated net profit of PKR 5,719mn (EPS: PKR 10.66) compared to PKR 4,647mn (EPS: PKR 8.66) in 1QCY23, up by 23% YoY. Alongside the result, the company announced an interim cash dividend of PKR 11.00/share in 1QCY24 (PKR 40.00/share in 1QCY23).

Result Highlights      

• On the fertilizer business front, EFERT’s earnings settled at PKR 10,784mn (EPS: PKR 8.08), surging by 2x YoY during 1QCY24 owed to i) a hike in urea and DAP prices by 66% and 22% YoY, respectively, ii) a massive jump in DAP offtake by 85% YoY, and iii) fall in finance cost amid reduction in short term borrowings.
• Engro Polymer & Chemicals Limited (EPCL) registered a loss of PKR 901mn (LPS: PKR 0.99) compared to net profit of PKR 1,183mn (EPS: PKR 1.30) due to higher gas prices and subdued PVC margins.
• Although we await disclosure, we believe that the contribution Elengy business during 1QCY24 stood at PKR 1,441mn.
• The other income of ENGRO depicted a decline of 9% YoY during 1QCY24, which is attributable to a fall in income from cash and cash balances.
• The finance cost reduced by 7% YoY in 1QCY24 on account of a decrease in short-term borrowings.
• The company booked a reversal of the loss allowance on subsidy receivable from Govt. amounting to PKR 58mn in 1QCY24 against the loss allowance on subsidiary receivable from Govt. of PKR 432mn in 1QCY23.
• Alongside the result, the company disclosed that the financial results of thermal energy (EPTL, EPQL, and SECMC) have been reported as discontinued operations given that these companies have met the classification criteria of IFRS-5 related to “Non-Current Assets Held for Sale and Discontinued Operation”.

AHL

Kohat Cement Company 3QFY24 earnings recorded at PKR 10.51/share