EPCL is scheduled to announce its financial results for 4QCY21 on Feb 8th, 2022. We expect the company to post a profit after tax of PKR 4,437mn (EPS: PKR 4.88), up by 22% YoY during 4QCY21 compared to PKR 3,626mn (EPS: PKR 3.99) during 4QCY20. The rise in earnings is expected due to a 58% increase in PVC margins to an average of USD 1,084/ton in the quarter under review. During 4QCY21, sales are expected to jump up by 58% YoY due to higher volumetric sales along with higher PVC prices.

Finance cost is expected to increase by 58% YoY to PKR 566mn due higher level of borrowings and higher interest rates. This will take the CY21 earnings to PKR 14,809mn (EPS: PKR 16.29) against PKR 5,730mn (EPS: PKR 6.30) last year.

Alongside the result, we expect the company to announce a cash dividend of PKR 1.00/share, which will take the full year payout to PKR 11.80/share.

Courtesy- AAHL Research