Engro Corporation Limited (ENGRO) is expected to announce its 3QCY21 financial result on 22nd Oct’21, where we expect the company to post a consolidated earnings of PKR 7,878mn (EPS: PKR 13.67), down by 15% YoY.

On the fertilizer business front, EFERT’s bottom-line clocked-in at PKR 4,412mn (EPS: PKR 3.30), depicting a decline of 37% YoY during 3QCY21 given i) fall in urea and DAP offtake by 9% and 46% YoY, respectively and ii) drop in gross margin by 324bps YoY, settling at 25.72% since company is accruing industrial feed gas rate at EnVen plant as concessionary gas period has ended on 30th Jun’21.

Meanwhile, net profit of Engro Polymer & Chemicals Limited (EPCL) settled at PKR 3,107mn (EPS: PKR 3.42), up by a massive 65% YoY, which is attributable to 33% YoY higher PVC volumetric sales (64K tons) and historic high PVC prices.

Furthermore, Frieslandcampina Engro Pakistan Limited reported earnings of PKR 545mn (EPS: PKR 0.71), up by 19x YoY on the back of growth in gross margins by 434 bps, settling at 16% owed to higher sales volumes.

Whereas, Engro Powergen Qadirpur Pakistan Limited (EPQL) posted a Profit after Tax of PKR 558mn (EPS: PKR 1.72) in 3QCY21 against PKR 722mn (EPS: PKR 2.23) during SPLY, down by 23% YoY due to absence of debt portion.

Alongside this, we expect the Elengy business earnings to arrive at PKR 628mn, with an assumption of handling of ~541/mmcfd of RLNG during 3QCY21, according to our estimates. On the other hand, contribution from Thar business (EPTL & SECMC) during 3QCY21 is projected to be PKR 2,532mn. In addition to the result, we expect the company to announce a cash dividend of PKR 8.00/share in 3QCY21 (PKR 27.00/share in 9MCY21).

Courtesy – AHL Research