Pakistan’s leading company, Engro Corporation announced its financial results for the half year ended June 30th, 2018. The company announced a consolidated Profit after tax (PAT) of PKR 11.05 billion. However, PAT associated to the shareholders increased to PKR 6.09 billion from PKR 3.77 billion during the comparative period last year.
Engro Corporation finished the first half of year 2018 with revenue of PKR 71.73 billion – 37 percent higher than PKR 52.24 billion for the related period last year. Increase was mainly determined by better fertilizers and petrochemical performance. The alone company achieved a PAT of PKR 3.7 billion against PKR 4.1 billion for the corresponding period last year, interpreting into an EPS of PKR 7.20 per share. The company also pronounced an interim cash dividend of PKR 7 per share for the quarter. Fertilizer business revenues have grown by 51 percent whereas PAT for the current period has improved by 74 percent; comparative to last year and stood at PKR 7.15 billion.
Greater profitability was managed by higher urea off take, lower financial charges and one-off tax effects arising due to reduction in corporate tax rate from 30 percent to 25 percent. However, delay in distribution of subsidy from government endures to put weight on working capital position of the company. The crucial drivers of profitability are availability of PVC, better performance from Engro’s energy assets like Qadirpur power project.