Engro Corporation Limited (ENGRO), one of the largest conglomerates in Pakistan, announced a consolidated profit-after-tax (PAT) of Rs5.07 billion for the second quarter ending June 30, 2024. This figure represents a drastic decline of over 61% compared to the Rs13.03 billion reported during the same quarter last year. The company shared these financial results on Thursday through the Pakistan Stock Exchange (PSX), reflecting the tough market conditions it has faced.
As a result of this significant profit drop, the Earnings Per Share (EPS) for Q2 CY24 has fallen to Rs4.18, down from Rs11.40 in the corresponding quarter of the previous year.
In its board meeting held on August 21, Engro declared an interim cash dividend of Rs8 per share (80%) for the six months ending June 30, 2024, in addition to an earlier interim cash dividend of Rs11 per share (110%) that had already been distributed.
On a consolidated basis, the company’s revenue experienced a slight dip of over 1%, totaling Rs74.59 billion in Q2 CY24, compared to Rs75.09 billion in Q2 CY23. In contrast, the cost of revenue surged by 14%, reaching Rs61.58 billion compared to Rs53.9 billion from the previous year. This rise in costs resulted in a nearly 39% decline in gross profit, which decreased to Rs13 billion from Rs21.2 billion.
Despite these setbacks, Engro saw a notable increase in other income, which rose 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 to Rs5.48 billion, reflecting a 46% increase year-on-year.
Consequently, the profit before tax (PBT) for Q2 CY24 stood at Rs4.49 billion, representing a substantial decline of over 64% from Rs12.56 billion reported in the same quarter the previous year. Tax payments made by the company also decreased, with Rs2.27 billion paid in Q2 CY24 compared to Rs11.07 billion during the same period last year.
Additionally, Engro Corporation revealed 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 under International Financial Reporting Standard 5 (IFRS 5), as these entities fulfill the criteria for non-current assets held for sale.
