Engro Corporation may depict a massive jump of 94% YoY in its 1QCY24.

Engro Corporation Limited (ENGRO) is scheduled to announce its 1QCY24 financial result on 25th Apr’24. We expect the company’s consolidated earnings to arrive at PKR 9,006mn (EPS: PKR 16.78), a massive jump of 94% YoY.

On the fertilizer business front, EFERT’s earnings settled at PKR 10,784mn (EPS: PKR 8.08), surging by 2x YoY during 1QCY24 owed to i) a hike in urea and DAP prices by 66% and 22% YoY, respectively, ii) a massive jump in DAP offtake by 85% YoY, and iii) fall in finance cost amid reduction in short term borrowings. Meanwhile, Engro Polymer & Chemicals Limited (EPCL) registered a loss of PKR 901mn (LPS: PKR 0.99) compared to a net profit of PKR 1,183mn (EPS: PKR 1.30) due to higher gas prices and subdued PVC margins. Whereas, Engro Powergen Qadirpur Pakistan Limited (EPQL) posted a Profit after Tax of PKR 585mn (EPS: PKR 1.81) in 1QCY24, up by 33% YoY on account of 8x YoY jump in finance income. Alongside this, we expect the profitability of Elengy business to settle at PKR 1,441mn, with an assumption of handling of ~663/mmcfd of RLNG during 1QCY24, as per our estimates. Meanwhile, the contribution from Thar business (EPTL & SECMC) during 1QCY24 is anticipated to be PKR 3,487mn. In addition to the result, we expect the company to announce an interim cash dividend of PKR 12.00/share in 1QCY24.

Courtesy – AHL Research

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