ENL Limited Reports 15% Revenue Increase to Rs 5.4bn, Operating Profit Rises to Rs 652m, but Profit After Tax Falls to Rs 195m due to Rising Finance Costs

Published On: December 12, 2023Company: ENL Limited (ENL.mu)
What are the reasons for the decrease in profit after tax despite improved operational performance?
The decrease in profit after tax, despite improved operational performance, is primarily attributed to the increase in finance costs caused by the rise in interest rates.

Summary

  • The Group had a strong operational performance in the quarter with a 15% increase in revenue to Rs 5.4bn and an increase in operating profit from Rs 602m to Rs 652m.
  • Despite the operational performance, profit after tax decreased from Rs 255m to Rs195m due to higher finance costs as a result of rising interest rates.
  • Most operating sectors saw enhanced results, particularly Commerce & Manufacturing which experienced a 37% increase in after-tax profit, largely due to improved results from Axess.
  • Over Rs 1.5bn in land sales have been secured, though its reflection in the Real Estate’s quarter results has been delayed due to permit acquisition problems.
  • Rogers Hospitality’s profitability increased compared to the previous year, but its overall segment was negatively affected due to the closing of three hotels under New Mauritius Hotels (NMH) for renovations.
  • Despite challenges, the outlook is positive with permits related to land sales obtained and NMH hotels scheduled for reopening by the end of December 2023. Continuous operational performance highlights expectations of enhanced results in the coming quarter and financial year, despite high finance costs.
  • An interim dividend of Rs 0.55 per share for the financial year ending June 30, 2024, has been declared by the company.

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About ENL Limited (ENL.mu)

ENL Limited is a diversified conglomerate engaged in sustainable value creation in the following sectors: real estate, hospitality, agro-industry, commerce, logistics and fintech. Operations are driven by its main subsidiaries, namely, Rogers, ENL Property and ENL Agri. The Company also holds sizeable stakes in Eclosia and New Mauritius Hotels ENL Limited is listed on the Stock Exchange of Mauritius.

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