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