Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its 2QCY22 financial result on Aug 10th, 2022.

We project the company to post a profit after tax of PKR 2,483mn (EPS: PKR 2.73), down by 20% YoY | 47% QoQ during 2QCY22. The decline in earnings is expected due to the implementation of super tax (without super tax: PKR 4,832mn; PKR 5.31/share).

During the quarter under review, sales are expected to jump up by 42% YoY due to higher volumetric sales along with 21% YoY PKR depreciation. Finance cost is expected to increase by 17% YoY to PKR 598mn due to higher interest rates. Led by a 10.4% PKR depreciation during the quarter, we expect the company to book an exchange loss of PKR 722mn.

Alongside the result, we expect the company to announce a cash dividend of PKR 2.50/share, which will take the 1HCY22 payout to PKR 7.50/share.

Courtesy- AHL Research