Engro Polymer Posts Massive Loss in Q1 2024

Engro Polymer and Chemicals Limited (PSX: EPCL) announced its 1QCY24 financial result today where the company posted a loss of Rs. 901 million compared to a profit of Rs. 1.183 billion. On a quarterly basis, EPCL reported its lowest gross margins in 9 years and a loss before tax for the first time in almost 8 years, Vice President JS Global Waqas Ghani told ProPakistani. Net sales during 1QCY24 reduced by 8 percent YoY to Rs. 16.572 billion amid a decline in PVC volumes, said Arif Habib Limited in a brief review. On a QoQ basis, the topline tumbled by 14 percent YoY due to the aforementioned reason. The gross profit margin in 1QCY24 arrived at 6.4 percent compared to 20.0 percent during SPLY due to higher gas prices and subdued PVC margins. The finance cost climbed up by 42 percent YoY, arriving at Rs. 1.668 billion during 1QCY24 amid higher interest rates and a jump in short-term borrowings. On a sequential basis, the finance cost surged by 7x YoY, which is attributable to higher short-term borrowings. O ther income plummeted by 61 percent YoY to Rs. 175 million during 1QCY24 due to lower short-term investments. The other expenses plunged by 97 percent YoY to Rs. 23 million in 1QCY24, which is mainly on the back of the absence of exchange loss in the quarter. The company booked a tax reversal of Rs. 371 million in 1QCY24 compared to taxation of Rs. 489 million in 1QCY23. EPCL posted a Loss Per Share of Rs. 0.99 in 1QCY24 compared to earnings per share of Rs. 1.30 in the same period last year. At the time of filing, the company's scrip at the bourse was Rs. 44.42, down 4.60 percent or Rs. 2.14 with a turnover of 5.1 million shares on Monday. Source: Pro Pakistani