The net profit of Engro Corporation Limited increased by 1.5 per cent to Rs 3.7 billion during January-March quarter of 2016, the company revealed in its financial report submitted to the Pakistan Stock Exchange on Wednesday.
Pakistan’s largest private sector conglomerate reported an after-tax profit of Rs 3.7 billion or Rs 6.97 per share, down 1.5 per cent from Rs 3.63 billion or Rs 9.94 per share during the same quarter of 2015.
The company also announced an interterm cash dividend of Rs 5 per share. “The result was above market expectations,” said Topline Securities.
The company’s share price increased by Rs 5.37 or 1.7 per cent from the last day’s price (Rs 307.40) and closed at Rs 312.77 per share. A total of 43,63,100 shares of Engro Corp were traded at the close of market on Wednesday.
The company reported Rs 34.3 billion in revenues during the first quarter of 2016, a decrease of 16.8 per cent compared to Rs 41.2 billion it earned in sales during the corresponding period of 2015.
Topline Securities attributed the dip in revenues to lower fertilizer take-off along with a dip in urea prices in case of Engro Fertilizers (EFERT).
The gross margin of the company clocked in at 30.4 per cent, up 2.9 percentage points from 27.5 per cent of the same quarter last year. “Week commodity prices reduced costs, which bode well for Engro Foods,” said Topline Securities explaining the increase in gross margin. “Also, the delivery of subsidised gas to EnVen plant supported margin expansion for EFERT.”
Engro Corporation is a Pakistani public multinational corporation which was established in 2003. Engro Corp has subsidiaries involved in production of fertilizers, foods, chemicals, energy and petrochemicals.
