EPCL is projected to post a consolidated NPAT of PKR2.4bn (EPS: PKR2.75) for 3QCY23, up 60% QoQ and 11% YoY. This will take 9MCY23 consolidated NPAT to PKR5.2bn (EPS: PKR5.57), down 44% YoY. Gross margins are expected to remain flat at 28.4% on the back of higher realised PVC-Ethylene margins, offsetting the impact of higher fuel & power cost.

PVC prices remained high during 3Q due to high seasonal demand in Asia. However, owing to subdued construction activity, we expect PVC volumes to remain depressed and overall revenue to clock in at PKR19.8bn, up 4% QoQ. That said, the absence of super tax in 3Q should lift earnings sequentially.

We expect EPCL to declare an interim cash dividend of PKR2.4/sh in 3QCY23, taking 9MCY23 payout to PKR4.90/sh.

Courtesy – IMS Research