Engro Polymer and Chemicals Limited (EPCL) has posted a profit after tax of Rs. 4.717 billion for the quarter that ended on March 31, calendar year (CY) 2022.
According to the company’s consolidated financial results, profit after tax soared by 14 percent year-over-year (YoY) as compared to Rs. 4.143 billion in the same period last year. Along with the result, EPCL announced a final cash dividend of Rs. 5.00 per share for the quarter, higher than industry expectations.
On a quarter-on-quarter (QoQ) basis, earnings increased by 1 percent during 1QCY22.
Net sales of the company increased by 48 percent YoY to Rs. 23.127 billion during 1QCY22 from Rs. 15.67 billion in the same period last year due to an increase in volumetric sales of PVC which increased by 21 percent YoY to 64.4K tons, compared to 53K tons in 1QCY21. Likewise, the company’s revenue went up by 98 percent YoY for the period in review.
Conversely, gross margins of the company went down by 6.65 percent YoY to 33.1 percent during the period in review. The decline was witnessed due to lower PVC margins.
Distribution expenses soared by 64 percent YoY to Rs. 150 million amid an increase in volumetric sales and transportation expenditure, while the company’s financing cost increased by 52 percent YoY to Rs. 613 million during the quarter.
Other expenses of the company went up by 590 percent YoY to Rs. 848 million during the quarter. Other income increased by 48 percent YoY to Rs. 432 million due to higher-level investments.
More data suggests that the cost of sales of the company went up by 64 percent YoY to Rs. 15.462 billion.
Earnings per share of the company increased to Rs. 5.19 from Rs. 4.56.
