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Engro Powergen Qadirpur Limited’s profitability rose significantly by 77.4% to Rs2.44 million in the first nine months of the ongoing calendar year 2023 (9MCY23) from Rs1.37 million over the same period last year. The financial results revealed that the power company’s net revenue increased to Rs10.9 million in 9MCY23, higher by 44.1%, from Rs7.56 million in 9MCY22. The company attributed this rise in revenue to its high merit order position and improved dispatch. Additionally, the rise in sales revenue can be attributed to increased energy payments resulting from fuel price increases. Going by the results, the company’s gross profit expanded by 72.08% to Rs2.58 million in 9MCY23 from Rs1.56 million in 9MCY22. As a result, the gross margin improved to 23.71% in 9MCY23 from 19.86% in 9MCY22.

The company’s administrative expenses increased by 20.62% in 9MCY23 and stood at Rs263,350 compared to Rs218,330 in 9MCY22. During the period under review, the operating profit expanded 81.53% to Rs2.3 million from Rs1.27 million in 9MCY22. The profit-before-tax showed a 77.18% rise from Rs1.38 million in 9MCY22 to Rs2.44 million in 9MCY23. The company’s net profit margin stood at 22.40% in 9MCY23 against 18.21% last year. The earnings per share stood at Rs7.54 in 9MCY23 compared to Rs4.25 in 9MCY22.

Assets analysis

Engro Powergen Qadirpur reported a decline in its non-current assets by 3.26% in September 2023 to Rs10.9 million as compared to Rs11.3 million registered in December 2022. On the current asset side, the company observed a slight increase of 0.91% to Rs12.94 million in September 2023 from Rs12.82 million in December 2022. As a result, the total assets fell by 1.04% due to a decline in non-current assets. The company registered Rs23.9 million in total assets at the end of September 2023 against Rs24.16 million in December 2022.

Equity and liabilities analysis

At the end of September 2023, the company announced a total equity of Rs15.06 million, which was 14.93% greater than Rs13.1 million recorded at the end of December 2022. Similarly, Engro Powergen Qadirpur’s total liabilities reduced to Rs8.8 million in September 2023 from Rs11.05 million in December 2022. This decline in total liabilities suggests the healthy financial position of the company as it financed its operations without borrowing. The company has efficiently managed its core operations and monitored its costs over the period. As a result, the company had Rs23.9 million total equity and liabilities at the end of September 2023 compared to Rs24.16 million in December 2022.

Cash flow analysis

Engro Powergen Qadirpur posted a 41.28% decrease in net cash generated from operating activities, clocking in at Rs2.95 million in September 2023 compared to Rs5.03 million registered in September 2022. The company utilised cash of Rs138,966 to finance investing activities at the end of September 2022, while in September 2023 the company was able to generate net cash of Rs161,446, showing a growth of 216.18%. However, the company used net cash of Rs3.85 million and Rs1.24 million in financing activities in September 2022 and September 2023, respectively, indicating a decline of 67.62%.  The net increase in cash and cash equivalent grew by 79.76% to Rs1.86 million in September 2023 from Rs1.039 million in September 2022.

Credit: INP-WealthPk