Arif Habib Limited.
Engro Corporation Limited (ENGRO) held its Analyst briefing on October 30th to discuss 9MCY15 results. The company posted consolidated net earnings of PKR 11,023mn (EPS: PKR 16.95), up by 113% YoY when compared with net earnings of PKR 5,163mn (EPS: PKR 8.63) posted in SPLY. Along with the result, the company announced a third interim cash dividend of PKR 5/share (total dividend thus far PKR 11/share).
- The management believes it has finally compressed its debt to a more manageable level (PKR 43bn) with a debt to equity ratio of 53%.
- EFERT managed to curb the input price hike hit on its bottom-line by raising fertilizer prices by PKR 160/bag. The management also seemed of the view about a possible feed price reversal; however, fuel prices shall have to be absorbed.
- Lower fuel and milk procurement cost, coupled with volume uptick allowed EFOODS to achieve greater margins during the period.
- Market share of the ambient UHT expanded to 56% as compared to 53% during SPLY.
ENGRO Eximp Agri
- Impairment booked against rice processing plant during the period of PKR 2.138bn was subsequent to restructuring of the business and the net book value of the rice plant now stands at ~PKR 2.3bn.
- Volumetric sales have declined from 53.5K tons to 19.6K tons.
- The company has already explored its B2B side and plans to now redirect its focus to the B2C side in the rice segment.
ENGRO Elengy Terminal
- The company handled 11 cargos of 631,006 MTs of LNG segment during the period ended September 2015 including 6 FSRU and 5 Ship to Ship (STS) operations.
Sindh ENGRO Coal Mining Company
- The Company managed to clear wastage of 3.5mn BCM at Thar and expects financial closure of the USD 845mn project by year end. The capital structure of the project would be Debt to Equity ratio of 75:25 while majority of the debt would be in local currency.
- Project cost of ENGRO Powergen Thar Ltd would be USD 1,108mn with debt to equity ratio of 75:25 while majority debt would be in foreign currency.