EPCL is scheduled to announce its financial results for 3QCY21 on Oct 15th, 2021. We expect the company to post profit after tax of PKR 3,478mn (EPS: PKR 3.83), up by 85% YoY during 3QCY21 compared to PKR 1,881mn (EPS: PKR 2.07) during 3QCY20. The rise in earnings is expected due to 66% increase in PVC margins to an average of USD 837/ton.
During 3QCY21, sales are expected to jump up by 33% YoY due to higher volumetric sales along with higher PVC prices. Gross margins are expected to increase by 9pps to 41% due to 66% YoY rise in PVC margins. Finance cost is expected to increase by 17% YoY to PKR 531mn due higher level of borrowings.