ISLAMABAD: Engro Corporation Limited (ENGRO), one of Pakistan’s largest conglomerates, reported a consolidated profit-after-tax (PAT) of Rs5.07 billion for the second quarter ending June 30, 2024, marking a steep decline of over 61% compared to Rs13.03 billion in the same period last year. The financial results, released on Thursday via the Pakistan Stock Exchange (PSX), highlight the challenging market conditions faced by the company.
This sharp drop in profit translates to an Earnings Per Share (EPS) of Rs4.18 for Q2 CY24, a significant decrease from the EPS of Rs11.40 recorded in the corresponding quarter of the previous year.
During its board meeting on August 21, Engro also announced an interim cash dividend of Rs8 per share (80%) for the six months ending June 30, 2024. This dividend is in addition to the earlier interim cash dividend of Rs11 per share (110%) already distributed.
On a consolidated basis, Engro’s revenue slightly decreased by over 1%, amounting to Rs74.59 billion in Q2 CY24, down from Rs75.09 billion in Q2 CY23. However, the cost of revenue surged by 14%, reaching Rs61.58 billion compared to Rs53.9 billion last year. This increase in costs led to a nearly 39% decline in gross profit, which fell to Rs13 billion from Rs21.2 billion.
Despite these challenges, Engro’s other income saw a notable increase, rising to Rs3.72 billion in Q2 CY24 from Rs2.26 billion in the same period last year. However, the company’s finance cost also escalated, amounting to Rs5.48 billion, a 46% increase year-on-year.
These financial dynamics resulted in a profit before tax (PBT) of Rs4.49 billion for Q2 CY24, a significant decline of over 64% from Rs12.56 billion recorded in the same quarter of the previous year. The company’s tax payments also saw a reduction, with Rs2.27 billion paid in Q2 CY24 compared to Rs11.07 billion in the corresponding period last year.
Engro Corporation also disclosed that the financial results of its thermal energy assets, including Engro Powergen Qadirpur Limited (EPQL), Engro Powergen Thar Limited (EPTL), and Sindh Engro Coal Mining Company (SECMC), have been classified as discontinued operations in accordance with International Financial Reporting Standard 5 (IFRS 5), as these entities meet the criteria for non-current assets held for sale.
