Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its 1QCY25 financial result on 17th Apr’25, where we project the loss to arrive at PKR 754mn (LPS: PKR 0.83). The decline in earnings during 1QCY25 is anticipated primarily due to elevated gas prices and muted PVC margins, which are down 9% YoY.
Sales are projected to reach PKR 17.5bn, reflecting a 6% YoY increase. However, gross margins are expected to compress by 173bps YoY, settling at 4.7%, amid cost pressures. Other expenses are likely to surge by 115% YoY. Finance costs are estimated to rise marginally by 1% YoY to PKR 1,691mn, driven by an increase in short-term borrowings.
On a QoQ basis, the earnings decline can be attributed to the normalization of depreciation expenses and the absence of a tax reversal recorded in the previous quarter.
Courtesy – AHL Research
