Engro Holdings Limited (ENGROH) reported consolidated earnings per share of PKR 26.78 for CY24, compared to PKR 17.88 in CY23. Furthermore, in 1QCY25, the company reported EPS of PKR 1.09, compared to PKR 4.20 in the same period last year (SPLY).
The acquisition of Deodar was finalized on July 3rd at a total cost of $562 million. The first 28 days of its performance were reflected in the most recent quarterly report. Deodar’s portfolio comprises of around 15,000 telecommunication towers, and a key advantage of this business is its unregulated status.
Management noted that the tenancy for Deodar is currently lower because of its brownfield nature compared to Enfrashare, but they still foresee considerable growth in the future. In terms of debt, one-third has been recorded, and the rest will be logged according to the payment schedule. Dividend payments have been temporarily suspended because of a substantial instalment for the Deodar business acquisition.
Management hopes to clear these instalments by December 2026, using a combination of debt and equity financing. Management stated that EPCL is currently operating under a cash conservation model. The business is confronting multiple challenges, including elevated energy costs and depressed market demand. The entities EPQL, EPTL, and SECMC have been re-integrated into the company’s financial books.
Management indicated that they are open to an exit from EPQL, while they plan to retain and continue operations with the other entities. Discussions with governmental authorities regarding the export of fertilizers are ongoing. An update on this initiative maybe expected following the conclusion of the current Rabi season.
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