Engro Corporation Limited (ENGRO) is expected to announce its 2QCY21 financial result on 24th Aug’21, where we expect the company to post a consolidated earnings of PKR 8,115mn (EPS: PKR 14.08), up by 41% YoY.

On the fertilizer business front, EFERT’s net profit arrived at PKR 4,810mn (EPS: PKR 3.60), witnessing a jump of 24% YoY during 2QCY21 owed to a surge in urea and DAP prices by 5% and 62% YoY, respectively.

Furthermore, bottom-line of Engro Polymer & Chemicals Limited (EPCL) settled at PKR 3,122mn (EPS: PKR 3.44), a drastic jump of 105x YoY given i) higher PVC margins, up by a massive 115% YoY and ii) low base impact from last year due to lockdown, resulting in a surge in production.

Moreover, Engro Powergen Qadirpur Pakistan Limited (EPQL) posted a Profit after Tax of PKR 506mn (EPS: PKR 1.56) in 2QCY21 compared to PKR 414mn (EPS: PKR 1.28) during SPLY, up by 22% YoY. In addition to this, we expect the Elengy business earnings to clock-in at PKR 701mn, with an assumption of handling of ~642/mmcfd of RLNG during 2QCY21, as per our estimates. On the other hand, contribution from the Thar business (EPTL & SECMC) during 2QCY21 is projected to be PKR 2,542mn. Alongside the result, we expect the company to announce a cash dividend of PKR 12.00/share in 2QCY21 (PKR 24.00/share in 1HCY21).

Courtesy – AHL Research