Engro Corporation (ENGRO): 3Q2020 EPS at Rs16.12, up 52% YoY (in line with industry expectations)
- Engro Corporation Limited (ENGRO) announced its 3Q2020 financial result, where the company booked a consolidated profit (attributable to Owners of the Holding Company) of Rs9,286mn (EPS: Rs16.12) compared to Rs6,113mn (EPS: Rs10.61) in 3Q2019, up 52% YoY.
- It takes 9M2020 earnings to Rs18,345mn (EPS: Rs31.84), up by 42% YoY.
- Along with the result, the company announced a cash dividend of Rs10.0/share, taking cumulative dividend during 9M2020 to Rs24.0/share. The dividend announcement came in higher-than-our-expectations.
- Among the subsidiaries, Engro Fertilizer Limited (EFERT) earnings were up by 111% YoY to Rs7,034mn during 3Q2020 due to (1) higher Urea and DAP offtake by 35% YoY to 616k tons and 90% YoY to 183k tons, respectively and (2) lower effective tax rate at 2% vs. 44% in 3Q2019 amidst tax reversal.
- Similarly, Engro Polymer (EPCL) earnings were up 48% YoY higher to Rs1,881mn compared to Rs1,270mn in 3Q2019 due to (1) increase in PVC sales by 9% YoY to 48K MT and (2) increase in gross margins by 7.7ppts YoY to 32%.
Income from Joint Venture and Associates significantly increased by 70% YoY to Rs804mn from Rs472mn amid contribution from Sindh Engro Coal Mining Company (CECMC) and Engro Vopak Terminal.
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.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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