Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its 3QCY22 financial result on Oct 12th, 2022. We project the company to post a profit after tax of PKR 1,771mn (EPS: PKR 1.95), down by 43% YoY | 24% QoQ during 3QCY22. The decline in earnings is expected due to lower PVC margins, down by 40% YoY | 35% QoQ. During the quarter under review, sales are expected to decline by 20% YoY due to lower PVC prices, down by 26% YoY.

Finance cost is expected to increase by 13% YoY to PKR 549mn due to higher interest rates. Led by a 10% PKR depreciation during the quarter, we expect the company to book an exchange loss of PKR 741mn. Alongside the result, we expect the company to announce a DPS of PKR 1.50 (9MCY22: PKR 9.00/share).

Courtesy- AHL Research