Karachi: Engro Holdings Limited (ENGROH) reported a significant increase in earnings for the financial year CY25, driven primarily by a one-off impairment reversal on its thermal assets. The company's consolidated profit after tax (PAT) reached Rs107 billion, with the owner's share amounting to Rs56 billion and an earnings per share (EPS) of Rs46.20. However, when excluding the impact of the impairment reversal, the owner's PAT stood at Rs29 billion. The board chose not to declare a final dividend, focusing instead on funding the acquisition of Deodar as part of its tower portfolio strategy.
According to JS Global, Engro Holdings' acquisition of Deodar is anticipated to bolster future earnings through enhanced tenancy ratios, co-location opportunities, and increased operational scale. The expected rollout of 5G technology is projected to further strengthen revenue visibility and profitability in the long term.
Engro Fertilizers Limited, a subsidiary of ENGROH, reported earnings of Rs22 billion with an EPS of Rs16.9 for CY25. The segment benefited from robust urea sales totaling 2,313k tons, with a notable 4QCY25 offtake of 1,034k tons. Despite these gains, profitability was tempered by previous discounts on urea sales and weakened phosphate margins, alongside enduring challenges related to gas costs.
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