Engro Polymer announced a cash dividend of PKR 2.50/share

Engro Polymer & Chemicals Limited (EPCL) has released its financial results for the 9MCY23, and posted a profit after tax (PAT) of PKR 5,387mn (EPS: PKR 5.93), down by 42% YoY. However, during 3QCY23, earnings increased by 17% YoY to PKR 2,642mn (EPS: PKR 2.91). Earnings also increased by 69% QoQ basis due to higher sales volumes and lower tax charge. Along with the result, company also announced a cash dividend of PKR 2.50/share taking the period-end payout to PKR 5.00/share.

Result Highlights

During 9MCY23, net sales remained stable at PKR 62.0bn. However, during 3QCY23, sales increased by 48% YoY due to higher volumetric sales, we view.

Gross margins of the company went down by 727bps YoY to 25% during 9MCY23 owed to higher gas prices along with depressed PVC margins (-39% YoY). However, 29% YoY PKR depreciation during 9MCY23 cushioned the decline in margins.

Other expenses declined by 39% YoY to PKR 1,936mn during 9MCY23 attributable to lower exchange losses.

Other income also decreased by 13% YoY to PKR 1,152mn during 9MCY23 due to a decline in short-term investments.

Finance costs during 9MCY23 increased by 78% YoY to PKR 3,965mn in lieu of higher interest rates.


Currently, we have a “BUY” call on the stock with a Jun’24 TP of PKR 51.9/share. Following the release of the 3QCY23 financial results, we are increasing our earnings and dividend projections to PKR 7.99/share and PKR 6.50/share for CY23.

Courtesy – AHL Research


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