EPCL: 3QCY24E Result Preview

·         We expect EPCL to post earnings of PkR110mn (EPS: PkR0.12) in 3QCY24E, significantly down from PkR2.6bn (EPS: PkR2.74) in SPLY.

·         We anticipate revenues to drop by 29%YoY to PkR17.8bn from PkR25.0bn in SPLY, primarily due to a 29%/21%YoY expected decline in PVC and caustic soda offtakes, respectively.

· Company’s gross margins are expected to contract to 15.4% from 26.1% in SPLY due to a decline in average core margins and higher gas prices.

Courtesy – AKD  Research