KARACHI: Engro Corporation on Tuesday posted a profit-after-tax at Rs9.6 billion for the first half of 2015 (1HCY15), an increase of 202 per cent from Rs3.2bn earned in the same period last year.

Out of the net earnings, Rs8bn against Rs2.7bn year-on-year was attributed to “equity holders of holding company” and the remaining Rs1.6bn for latest half term and Rs0.48m in previous same term to “non-controlling interest”.

The holding company’s share of profit translated into earnings per share (eps) at Rs15.3 from Rs5.23 in the same period last year. The board also announced an interim cash dividend at Rs4 per share, in addition to an interim dividend already paid at Rs2 per share.

Analyst Tahir Abbas at Arif Habib Ltd commented that Engro Fertiliser contributed 72pc to Engro’s profitability and recorded 111pc year-on-year jump in earnings to Rs7.116bn during the period.

Engro Foods profit grew six times year-on-year to Rs1.977bn during 1HCY15 on account of improved volumetric sales (25pc dairy and 11pc ice cream segments). Chemical business remained under pressure.

In 2QCY15, consolidated earnings (attributable to the equity holders of holding company) amounted to Rs4.4bn (eps Rs8.34), up 541pc year-on-year over Rs0.68 million (eps Rs1.32).

Analyst Muhammad Tahir Saeed at brokerage Topline Securities observed that the revenue for 2QCY15 rose 18pc year-on-year to Rs46.4bn, due to 62pc year-on-year increase in Engro Fertiliser sales.

Engro Foods revenue also increased by 25pc year-on-year. Gross profits increased 69pc to Rs12.5bn in 2QCY15 while gross margins improved by 806 basis points to 26.9pc year-on-year.

Other incomes declined by 24pc to Rs757 million in 2QCY15 compared to Rs998m in the same quarter last year. Finance costs declined by 32pc year-on-year to Rs2.1bn in 2QCY15 from Rs3.1bn.

Published in Dawn, August 19th, 2015

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