Engro Corporation Limited (PSX: ENGRO) reported strong financial performance, with a profit of Rs 43.87 billion [EPS: Rs41.56] in the first nine months of CY23, marking a significant 42.85% YoY increase from the profit of Rs30.71 billion [EPS: Rs26.78] in the same period last year (SPLY).
Additionally, the company declared an interim cash dividend of Rs4 per share, representing 40% for the third quarter ending on September 30, 2023, in addition to the interim cash dividend of Rs42 per share, or 420% already distributed.
The company’s revenue increased by 26.26% YoY, reaching Rs339.3 billion compared to Rs268.74 billion in SPLY. Although the cost of sales also increased by 24.34% YoY, it was proportionally less than the sales increase, resulting in a 30.71% YoY increase in gross profit, totaling Rs105.63 billion in 9MCY23.
Furthermore, other income saw a 51.29% YoY surge, reaching Rs20.81 billion in 9MCY23, compared to Rs13.75 billion in SPLY. On the expense side, sales and distribution expenses increased by 24.41% YoY, while other operating expenses decreased by 26.77% YoY, totaling Rs6.82 billion and Rs5.7 billion, respectively, during the review period.
The company’s finance costs increased by 80.05% YoY, reaching Rs34.41 billion from Rs19.11 billion in 9MCY23, primarily due to higher interest rates. In terms of taxes, the company incurred higher tax expenses of Rs28.91 billion, reflecting an 18.32% YoY increase from the Rs24.44 billion paid in the corresponding period last year.
