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Engro Polymer and Chemicals likely to post increase sales in 1QCY24

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

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