ENL: 15% Growth In Revenue but Profit Declines

ENL group has reported a strong performance in the first quarter of 2024, with a 15% increase in revenue to Rs 5.4bn and an increase in operating profit from Rs 602m to Rs 652m.

However, profit after tax declined from Rs 255m to Rs 195m, primarily due to higher finance costs resulting from rising interest rates.

Most sectors within the group showed improved results, particularly Commerce & Manufacturing, which saw a 37% increase in after-tax profit, largely attributable to improved performance from Axess.

The company has secured over Rs 1.5bn from land sales, although the impact of this on the Real Estate sector’s quarterly results has been delayed due to permit acquisition issues.

Rogers Hospitality experienced increased profitability compared to the previous year, but the segment’s overall performance was affected negatively by the closure of three hotels under New Mauritius Hotels (NMH) for renovations.

Despite these challenges, the outlook remains positive, with permits related to land sales obtained and NMH hotels scheduled to reopen by the end of December 2023.

The company expects continued strong operational performance, which should lead to improved results in the coming quarter and financial year, despite the high finance costs.

The company has declared an interim dividend of Rs 0.55 per share for the financial year ending June 30, 2024.

Source: AfricanFINANCIALS