Engro Corporation Limited (ENGRO) is anticipated to announce its 3QCY22 financial result on 18th Oct’22, where we expect the company’s consolidated earnings to arrive at PKR 7,817mn (EPS: PKR 13.57), up by 28% YoY. On the fertilizer business front, EFERT’s net profit settled at PKR 4,182mn (EPS: PKR 3.13), down by 5% YoY during 3QCY22 owed to reduction in urea and DAP offtake by 26% and 50% YoY, respectively due to flash floods across the country during the quarter.

Meanwhile, bottom-line of Engro Polymer & Chemicals Limited (EPCL) settled at PKR 2,257mn (EPS: PKR 2.36), down by 27% YoY, given i) lower volumetric sales amid monsoon season during the quarter, and ii) decline in PVC margins. Whereas, Engro Powergen Qadirpur Pakistan Limited (EPQL) posted a Profit after Tax of PKR 971mn (EPS: PKR 3.00) in 3QCY22 compared to PKR 558mn (EPS: PKR 1.72) during SPLY, up by 74% YoY.

In addition to this, we expect the profitability of Elengy business to settle at PKR 1,015mn, with an assumption of handling of ~599/mmcfd of RLNG during 3QCY22, as per our estimates. Whereas, contribution from Thar business (EPTL & SECMC) during 3QCY22 is anticipated to be PKR 3,175mn.

Alongside the result, we expect the company to announce cash dividend of PKR 7.00/share in 3QCY22 (PKR 30.00/share in 9MCY22).

Courtesy- AHL Research