Engro Powergen Qadirpur Limited (PSX: EPQL) has posted a net profit of Rs1.27 billion for the third quarter ending September 2024, marking a 3.6% increase from Rs1.22 billion in the same period last year. The earnings per share (EPS) for the quarter stood at Rs3.91, up from Rs3.77 during the same quarter of the previous year.
After taking into account the unappropriated profit brought forward from the previous year, the total profit available for appropriation amounts to Rs10.5 billion. In line with its financial performance, the company also announced an interim cash dividend of Rs2.5 per share (25%), which is in addition to the Rs3.5 per share dividend already paid out earlier this year.
Revenue and Profit Breakdown
Despite the overall increase in profits, the company’s revenue in Q3 2024 saw a slight decline of 0.1%, standing at Rs3.82 billion, compared to Rs3.82 billion in the same period last year. The cost of sales, however, increased by 1.7%, rising to Rs2.65 billion from Rs2.61 billion in the third quarter of 2023. This resulted in a 3.9% reduction in gross profit, which amounted to Rs1.17 billion for the quarter.
The company’s administrative expenses also surged by 47.6% year-over-year, reaching Rs119.92 million compared to Rs81.26 million in the corresponding quarter last year. Selling and distribution expenses, however, remained unchanged, while other operating expenses dropped by 41.9%, from Rs21.7 million to Rs12.6 million.
A notable highlight in the quarter’s financials is the significant increase in other income, which rose by a staggering 521.5% to Rs709.32 million from Rs114.13 million in Q3 2023. This sharp rise in other income contributed to the company’s overall profitability despite the increased administrative costs.
Finance Costs and Taxation
The finance cost for the quarter was recorded at Rs474.24 million. Meanwhile, the company’s taxation for the period amounted to Rs3.21 million, slightly higher than the Rs2.94 million in the same quarter last year.
Summary of Key Financial Metrics (Rs in ‘000)
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | 3,817,046 | 3,820,972 | -0.10% |
| Cost of Sales | 2,651,351 | 2,608,100 | +1.66% |
| Gross Profit | 1,165,695 | 1,212,872 | -3.89% |
| Administrative Expenses | 119,923 | 81,259 | +47.58% |
| Other Income | 709,324 | 114,130 | +521.51% |
| Other Operating Expenses | 12,604 | 21,698 | -41.91% |
| Finance Cost | 474,235 | – | N/A |
| Profit Before Taxation | 1,268,257 | 1,224,045 | +3.61% |
| Taxation | 3,205 | 2,935 | +9.20% |
| Net Profit | 1,265,052 | 1,221,110 | +3.60% |
| Basic Earnings Per Share (EPS) | 3.91 | 3.77 | +3.60% |
Dividend and Profit Distribution
EPQL’s announcement of an interim cash dividend of Rs2.5 per share reflects the company’s commitment to maintaining steady returns for its shareholders. This brings the total interim dividend payout to Rs6.0 per share for the year.
Outlook
Engro Powergen Qadirpur Limited’s performance in the third quarter of 2024 shows resilience, despite a minor decline in revenue and rising operational costs. The significant boost in other income has helped the company maintain its profitability. As the company moves forward, it will likely continue focusing on optimizing operational efficiency and managing costs to sustain its growth trajectory.
