EPCL’s 4QCY23 earnings are expected to clock in at PkR1.62/sh: EPCL will announce its 4QCY23 result sometime during the current month, where we expect earnings of PkR2.0bn (diluted EPS: PkR1.62) vs. PkR2.6bn (EPS: PkR2.2) in the quarter before, down 26%QoQ. The said quarterly decline is primarily attributable to the expected decline in the sales volume and gross margin contraction.

Topline is expected to clock in at PkR22.2bn vs PkR25.0bn in the quarter before (↓11%QoQ), with PVC sales anticipated to decrease by 10%QoQ to 61k tons due to an overall slowdown in construction in winters. Gross margins are expected to shrink to 23.2% from 26.1% in 3QCY23, mainly due to a 14% increase in gas prices from Nov’23.

Additionally, we expect the company to announce a final cash dividend of PkR1.5/sh, taking the full-year dividend to PkR6.5/sh.

Courtesy – AKD Research