Karachi, August 28, 2025: Engro Holdings Limited, previously known as Dawood Hercules Corporation Limited (PSX: ENGROH), announced its financial results for the half year ended June 30, 2025.
Overview of Financial Performance
Consolidated Results
For the half year ended June 30, 2025, the Company’s consolidated Profit-After-Tax (PAT) stood at PKR 73,318 million (PAT attributable to shareholders: PKR 35,575 million), with an Earnings Per Share (EPS) of PKR 29.54. This compares to an EPS of PKR 8.09 in the same period last year.
This significant increase is primarily due to the reversal of a previously recognized impairment linked to thermal energy assets. Excluding this one-off impact, the normalized consolidated PAT would have been PKR 19,562 million (PAT attributable to shareholders: PKR 9,002 million).
Standalone Results
On a standalone basis, the Company reported a PAT of PKR 67 million, a decrease from PKR 4,176 million in the same period last year. This translates to an EPS of PKR 0.06 versus PKR 8.68 in 2024.
The decline is attributed to the transfer of income-generating investments to DH Partners and a reduction in dividends from Engro Corporation, which is retaining earnings to fund a major tower acquisition.
Major Accounting Adjustments Impacting Comparability
This period’s results were significantly shaped by three major structural and accounting adjustments:
Creation of Engro Holdings
Effective January 1, 2025, a Scheme of Arrangement made Engro Corporation a wholly-owned subsidiary. Consequently, profit attributable to owners now reflects 100% of Engro Corporation’s earnings, compared to 39.97% previously. Additionally, 723 million new shares were issued, increasing the total outstanding shares from 481 million to 1,204 million, which impacts EPS comparisons.
Reversal of Impairment on Thermal Energy Assets
Following the termination of divestment agreements in April 2025, Engro Energy’s thermal assets were reclassified back into continuing operations. This move resulted in the reversal of previously recognized impairments and other adjustments amounting to PKR 53,756 million (Owners’ Share: PKR 26,573 million).
Acquisition of Deodar Towers
On June 3, 2025, the Group consolidated Deodar (approximately 10,600 towers) into its financial statements. Assets and liabilities were recognized at provisional fair values of PKR 220,612 million and PKR 167,679 million, respectively. Deodar’s results for the 28 days up to June 30 are included in this half-year report.
Note to Shareholders: These adjustments, while compliant with accounting standards, had a material impact. The reported EPS and PAT movements stem from these structural changes and a one-off impairment reversal, rather than solely from the underlying operational performance of the businesses.
Distribution to Shareholders
The Board has decided not to declare an interim dividend for 2025.
The immediate priority is to fund the remaining requirements for the tower acquisition, which is considered one of the most important investments in Engro’s history. This investment is expected to generate durable cash flows for years to come. The Board views retaining earnings to support this investment as the optimal strategy for building long-term shareholder value.
