Pakistan’s conglomerate Engro Corporation Limited (ENGRO) posted a Profit After Tax (PAT) of Rs21.47 billion for the half-year ended June 30, 2023, an increase of 28% as compared to Rs16.8 billion recorded in the same period of the previous year, showed the company’s financial results posted at the Pakistan Stock Exchange (PSX) on Thursday.

The profit translates in to Earnings Per Share (EPS) of Rs19.12 in 1HCY23, in comparison to an EPS of Rs12.87 recorded in the same period last year.

The “earnings are according to industry expectations,” said Topline Securities in its note.

Moreover, the board of Engro in its meeting held on Wednesday, August 16, announced an interim cash dividend Rs2 per share i.e. 20% in Q2 2023.

This is in addition to the interim cash dividend already paid at Rs40 per share dividend i.e. 400%.

On a consolidated basis, Engro Corporation’s revenue grew by 14% to Rs202.48 billion in 1HCY23 from Rs177.45 billion in 1HCY22.

Engro’s gross profit rose by 13% to Rs61.21 billion as compared to Rs54.17 billion.

The other income of Engro jumped 43% YoY, clocking in at Rs13.75 billion during 1HCY23 as compared to Rs9.62 billion recorded in same period last year.

However, the company’s finance cost witnessed a massive jump of nearly 66% YoY from Rs12 billion in 1HCY22 to Rs22.5 billion in 1HCY23.

The increase in cost of finance is attributed to rise in policy rate during the period.

This translated into a profit before tax (PBT) of Rs39.77 billion in 1HCY23, an increase of 7%. However, despite higher PBT the company paid lower taxes i.e. Rs18.3 billion in 1HCY23, in comparison to Rs20.27 billion registered in same period last year.