Engro profits up 213pc

Ghulam Raza Rajani
KARACHI: Profit after tax of Engro Corp increased significantly by 213 per cent to Rs3.19 billion during the first half of 2010 in contrast to Rs1.02 billion in the corresponding period last year.
Engro announced its financial results for the 1st half of CY10 on Wednesday. The profit resulted in to earning per share of Rs10.37 as compared to Rs3.63. The company also announced an interim cash dividend of Rs2 per share for the half-year ended June 30, 2010.
Topline of the company increased 47.3 per cent year on year to reach at Rs33.7 billion from Rs22.9 billion while gross profit was up by 84.2 per cent to Rs9.28 billion from Rs5.04 billion.
Engro bottomline was mainly enhanced due to Engro fertiliser Limited's profitability which increased by 93 per cent to Rs2.012 billion, which contributed by around 63 per cent in total pie of Engro corp. However, Engro polymer continued to report losses for the period under review while this time Engro Eximp's profits would support the company by around Rs1.2 billion in 1HCY10.
Engro Energy also supported the group's profitability with successful commissioning in 3rd week of March 2010. Finance cost will remain on higher side for the company with immense leverage on company's balance sheet of expansion.