AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Engro Holdings Limited, formerly Dawood Hercules Corporation Limited, has announced a notable increase in its financial performance for the half year ending June 30, 2025. The company reported a consolidated Profit-After-Tax (PAT) of PKR 73,318 million, a substantial rise attributed mainly to the reversal of impairment on thermal energy assets previously held for sale.
On a standalone basis, Engro Holdings recorded a PAT of PKR 67 million, a decline from PKR 4,176 million in the previous year. This decrease is linked to the transfer of income-generating investments to DH Partners and reduced dividends from Engro Corp, which is retaining earnings to finance a major acquisition.
The period was marked by significant accounting adjustments. As of January 1, 2025, Engro Corporation became a wholly owned subsidiary of Engro Holdings, leading to an increase in profit attributable to owners. This change also saw the issuance of 723 million new shares, affecting earnings per share comparisons.
Additionally, the reversal of impairment on thermal energy assets followed the termination of divestment agreements, leading to a one-off impact of PKR 53,756 million on the company’s financials. The acquisition of Deodar Towers, completed in June 2025, further influenced the results, adding substantial assets and liabilities to the company’s balance sheet.
Despite the improved financial figures, the board has decided against declaring an interim dividend for 2025. The focus remains on funding the Deodar Towers acquisition, a strategic investment expected to provide steady cash flows in the future.
These developments underscore the structural changes within Engro Holdings and highlight the impact of strategic decisions on the company’s financial performance, separate from its core operational outcomes.