Engro Polymer and Chemicals Limited (EPCL) is scheduled to announce its CY22 financial result on 7th Feb’23, with earnings projected at PKR 12.14bn (EPS: PKR 13.36), down by 19% YoY. We project the company to post a PAT of PKR 2,833mn (EPS: PKR 3.12) in 4Q, down by 40% YoY | +25% QoQ.

The YoY decline in earnings is expected due to lower PVC margins, down by 65% YoY. Sales are expected to decline by 20% YoY during 4QCY22, due to lower PVC prices (-49% YoY). Finance cost is expected to increase by 71% YoY to PKR 857mn due to higher interest rates.

On a QoQ basis, the surge in earnings is expected mainly due to lower other expenses amid 1% PKR appreciation; we expect the company to book an exchange gain of PKR 64mn during the quarter.

Alongside the result, we expect the company to announce a DPS of PKR 3.00 (CY22: PKR 13.00/share.

Courtesy- AHL Research