Karachi, October 31, 2012 (PPI-OT): Engro Corporation has posted loss after tax of PKR 443.17 million (LPS: PKR 0.87) in 9MCY12 as against a significant profit of PKR 5,590.39 million last year (EPS: PKR 10.88).
According to Alfalah Securities Limited, the decline in profitability is mainly attributed to loss arising from the fertilizer segment due to non-availability of gas to its new plant Engro Enven. Engro Corp posted a consolidated loss of PKR 102.7 million after tax (LPS: PKR 0.20) in 3QCY12 as against a profit of PKR 2,209.063 million (EPS: PKR 4.30) the same period last year. The gas supply shortfall situation is likely to persist in the short to medium term rather it is likely to aggravate as winter season approaches therefore; the chances of Engro Enven getting a sustained supply of gas are bleak in 2013. Alfalah Securities Limited recommends a cautious stance on Engro despite that the low interest rates prevalence is likely to benefit Engro being a highly leveraged conglomerate.