Engro Holdings posts H1 2025 results amid restructuring, acquisitions

KARACHI: Engro Holdings Limited announced its financial results for the half year ended June 30, 2025, reflecting a period marked by significant structural changes and strategic acquisitions.

For the six months ending June 30, Engro Holdings posted a consolidated Profit After Tax (PAT) of Rs73.32 billion, with PAT attributable to shareholders at Rs 35.58 billion, translating into an earnings per share (EPS) of Rs29.54, up from 8.09 in the same period last year.

The sharp rise is primarily due to the reversal of previously recognized impairment on thermal energy assets that had been classified as held for sale, rather than underlying operational growth.

Excluding this one-off adjustment, consolidated PAT stood at Rs19.56 billion, with PAT attributable to shareholders at Rs9 billion. On a standalone basis, Engro Holdings reported a PAT of Rs67 million against Rs4.18 billion in H1 2024, with EPS dropping to Rs0.06 from Rs8.68. The decline is largely attributed to the transfer of income-generating investments to DH Partners under the Scheme of Arrangement effective January 1, 2025, and reduced dividend inflows from Engro Corporation, which retained earnings to fund the Group’s major towers acquisition.

The period was also shaped by major accounting and structural adjustments. The creation of Engro Holdings under the Scheme of Arrangement made Engro Corporation a wholly owned subsidiary, meaning profit attributable to owners now reflects 100 percent of Engro Corporation’s earnings compared with 39.97 percent in the same period last year.

In addition, 723 million new shares were issued, expanding the outstanding share base from 481 million to 1.204 billion, which affected EPS comparisons. Thermal energy assets previously classified as “held for sale” were reclassified back into continuing operations following the termination of divestment agreements in April 2025, resulting in a reversal of impairment and related adjustments amounting to Rs 53.76 billion, of which Rs 26.57 billion is attributable to shareholders.

Engro also consolidated Deodar, which includes around 10,600 telecom towers, following its acquisition from PMCL on June 3. The assets and liabilities were recognized at provisional fair values of PKR 220.61 billion and PKR 167.68 billion respectively, with Deodar’s results for the 28-day period to June 30 included in the half-year accounts.

The Board of Engro Holdings has decided not to declare an interim dividend for 2025, prioritizing funding for the towers acquisition, one of the most significant investments in the Company’s history.

The acquisition is expected to generate durable cash flows in the long term, and retaining earnings is viewed as a strategic move to build shareholder value over time.

Copyright Business Recorder, 2025