AKD Research - Off the Analyst's Desk |
February 18, 2021 |
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ENGRO: Posted 93%YoY higher 4QCY20 EPS of PkR11.7 |
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· Engro Corporation Ltd (ENGRO) announced 93%YoY higher NPAT of PkR6.75bn (EPS: PkR11.72), taking full year earnings to PkR25.10bn (EPS: PkR43.57), up 52% YoY.
· For 4QCY20 alone, the increase in earnings was led by (i) 163% YoY increase in other income, where 56% held EFERT recorded GIDC re-measurement adjustment of PkR2.12bn, (ii) share of profit from associates to PkR849mn in 4Q and, (iii) lower effective tax rate of 17% vs 33% in the same period last year. On sequential basis, the 4Q earnings posted a decline of 27% due to jump in other expenses, 2.4x higher finance cost and higher effective tax rate of 17% vs. 11% in previous quarter.
· The company also announced final cash dividend of PkR2.0/sh taking the cumulative payout to PkR26.0/sh vs. PkR24.0/sh last year. |
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.
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