Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its 1QCY24 financial result on 19th Apr ’24, where we project the earnings to arrive at PKR 871mn (EPS: PKR 0.96), down by 26% YoY. The revenue decline is expected due to higher gas prices and subdued PVC margins (down by 30% YoY) during the quarter.

Sales are expected to arrive at PKR 18.5bn, up 3% YoY during 1QCY24.

The company’s gross margins are expected to decline by 88ppts to 19.1% during 1QCY24. Other expenses are expected to decrease by 74% YoY, mainly due to the absence of exchange loss in the outgoing quarter. Finance cost is projected to increase by 8% YoY to PKR 1,275mn due to higher interest rates and a surge in short-term borrowings. On a QoQ basis, the decline in earnings is expected due to the reasons above.

Courtesy – AHL Research