Hifsa Raja

Dawood Hercules Corporation Limited’s sales increased by 108.13% to Rs810 million in the first three months of the calendar year 2023 (3MCY23) from Rs389 million over the corresponding period of the previous year. Similarly, the company’s gross profit increased by 144% to Rs771 million in 3MCY23 from Rs315 million in 3MCY22. The company’s operating profit increased by 156% to Rs813 million in 3MCY23 from Rs317 million in 3MCY22. The profit-before-taxation jumped 256% to Rs618 million from Rs173 million in 3MCY22. The profit-after-taxation also jumped 278% to Rs413 million in 3MCY23 from Rs109 million in 3MCY22, reports WealthPK. 

In CY22, the company’s gross profit increased marginally by 3.49%, but net profit decreased by 7.25% compared to CY21. The company posted gross profit of Rs6.22 billion and an operating profit of Rs5.96 billion in CY22. It posted before-tax profit of Rs5.28 billion and net profit of Rs3.69 billion in CY22.

Industry comparison

Fatima Fertilizer Company Limited, Engro Fertilizers Limited, Engro Corporation Limited and Fauji Fertilizer Company Limited are regarded the rivals of Dawood Hercules Corporation Limited in terms of market capitalisation. Engro Corporation Limited has the largest market capitalisation of Rs157 billion followed by Fauji Fertilizer Company’s Rs131 billion. Dawood Hercules Corporation has market value of Rs49.9 billion.

Important functions

The primary activity of Dawood Hercules Corporation is to make and manage investments. It carries out any incidental actions and tasks required to achieve this goal.

Listed equities portfolio

In accordance with the board of directors' agreed restrictions, the company has expanded its investment portfolio by adding shares of prestigious corporations listed on the Pakistan Stock Exchange (PSX). The amount Dawood Hercules Corporation invested in the equity market portfolio decreased over the time. The portfolio generated dividends worth Rs1,188 million.

Money market portfolio

The company effectively manages treasury portfolio in accordance with liquidity needs both in short and long-term securities in money markets. Consequently, the company was able to generate interest revenue due to the rise in interest rates. The company was able to earn interest income of Rs281 million during the year.

Company profile

Dawood Hercules Corporation was incorporated in Pakistan on April 17, 1968 as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017). The principal activity of the company is to manage investments, including in its subsidiaries and associated companies.

Credit: Independent News Pakistan-WealthPk