ENGRO - Lower than expected payout!, (AKD Off the Analyst's Desk Aug 17, 2023)
ENGRO just announced their 2QCY23 results, posting a consolidated EPS of PkR11.03/sh vs. LPS of PkR0.97/sh in the SPLY. On a YoY basis, the company posted a 17.98% increase in revenue, due to higher top lines posted by all group entities. Total 1HCY23 EPS came in at PkR19.12/sh (↑48.56%YoY). Further, the company has announced a PkR2.0/sh dividend for 2QCY23, taking total 1HCY23 payout to PkR42.0/sh:
- Revenues increased due to higher top lines posted by EPQL (↑9.46%/28.78% QoQ/YoY), EPCL (↑5.92%QoQ/↓14.53%YoY) and FCEPL (↑7.56%/45.03% QoQ/YoY), whereas EFERT’s revenue declined by 12.77%QoQ, though up by a meagre 0.14%YoY. This resulted in ENGRO’s top line to increase by 8.03%/17.98% QoQ/YoY. The bottom line was impacted by contributions of PkR0.6bn (EFERT), PkR0.5bn (EPQL), PkR0.8bn (EPCL) and we opine impact of PkR2.2bn and PkR0.8bn from unlisted Engro Powergen Thar and Elengy propelled overall profitability.
- We opine company's indirect subsidiary, Engro Powergen Thar (EPTL) to have benefited from a higher load factor during the quarter alongside upward readjustments of LIBOR and KIBOR during the period. However, further details/disclosures are awaited.
- Share of profits from associates and joint venture showed a healthy rise to PkR1.7bn against a PkR0.1bn loss in 1QCY23, owing to healthy financial showing by FCEPL and major contributions from VOPAK and SECMC, in our opinion.
- Finance cost stood higher at PkR11.4bn vs. PkR11.1bn (1QCY23) and PkR6.9bn (2QCY22) mainly due to exorbitant interest rates however, this benefitted the company by translating to higher other income (↑0.58%/22.32% QoQ/YoY), further fueled by healthy cash balances.
- Overall, the group companies were negatively affected by high tax charges due to the imposition of supertax (having retrospective impact of 6%), however ENGRO managed to report a significantly higher bottom line (↑44.12%/562.00% QoQ/YoY) owing to above mentioned factors.
Engro Corporation is an agri based company. Co.'s core business is the manufacturing, purchasing and marketing of chemical fertilizers and seeds. Co. is engaged in the production of Urea fertilizer in Pakistan which is manufactured at Daharki and marketed under brand name Engro. Co. also maintains a seed business and is marketing imported hybrid and open pollinated seeds of maize and sunflower crop under the brand name of Bemisal. Co. has investments in joint ventures engaged in chemical terminal and storage, PVC resin manufacturing and marketing and Automation and Controls businesses.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.