Engro Polymer & Chemical Ltd Posts Highest Ever Quarterly Profit During Oct-Dec CY21

Engro Polymer and Chemicals Limited (EPCL) has posted its highest ever quarterly profit after tax of Rs. 4.689 billion for the fourth quarter that ended on December 31, calendar year (CY) 2021.

According to the company’s consolidated financial results, profits soared by 29 percent year-over-year (YoY) as compared to Rs. 3.627 billion in the same period last year. Along with the result, EPCL announced a final cash dividend of Rs. 5.50 per share for the quarter, higher than industry expectations of Rs. 3-4 per share.

On a quarter-on-quarter (QoQ) basis, earnings increased by 51 percent during 4QCY21.

Net sales of the company increased by 67 percent YoY to settle at Rs. 20.699 billion during 4QCY21 due to an increase in PVC prices by 46 percent YoY to US$ 1,623/ton, higher volumetric sales, and an 8 percent devaluation of the Pakistani Rupee against the US dollar. Likewise, the company’s revenue went up by 98 percent YoY for the period in review.

Gross margins during the fourth quarter clocked in at 35.5 percent against market expectations of 34 percent.

Distribution expenses soared by 58 percent YoY to Rs. 406 million amid an increase in volumetric sales and transportation expenditure. The company’s financial charges increased by 36 percent YoY primarily due to an increase in borrowings and higher interest rates.

Other expenses of the company went up by 654 percent YoY to Rs. 882 million during the quarter. Other income increased by 82 percent YoY to Rs. 356 million due to higher-level investments.

More data suggests that the financing costs of the company went up by 35 percent YoY to Rs. 502 million due to augmented borrowings along with higher interest rates.

Saving the bottom-line for last, the profit after tax for CY21 arrived at Rs. 15.06 billion (EPS: 16.57), up by 163 percent YoY from Rs. 5.7 billion in CY20.



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