Engro Polymer incurs Rs480m loss in three months

MG News | August 16, 2024 at 09:16 AM GMT+05:00

0:00

August 16, 2024 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) incurred a loss after tax of Rs480.49 million [LPS: Rs0.53] in the second quarter of 2024 as gross margins slumped.

That compares with a profit of Rs1.64 billion [EPS: Rs1.48] earned in the same period last year (SPLY).

Going by the results, the company's sales fell 6.5% to Rs17.81bn as compared to Rs19.04bn in SPLY.

Moreover, the cost of sales rose by 22.4% YoY, which worsened the gross profit by 74.6% YoY to Rs1.44bn in Q2 2024.

The gross margins fell significantly to 8.1% as compared to 29.7% in SPLY.

During the period under review, other income slipped 11.6% to stand at Rs299.3m in Q2 2024 as compared to Rs338.51m in SPLY.

On the expense side, the company's administrative expenses rose 64.6% YoY to Rs542.4m, selling and distribution expenses rose 25.4% YoY to Rs179.52m, and other operating expenses fell 99% YoY to Rs3.47m.

The company’s finance cost went up by 36.4% and stood at Rs2.13bn as compared to Rs1.56bn in SPLY, mainly due to higher interest rates.

On the tax front, the company received a tax credit worth Rs634.22m against the tax expense worth Rs1.85bn paid in the corresponding period of last year.

Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	17,812,077	19,041,198	-6.46%
Cost of sales	(16,375,000)	(13,377,243)	22.41%
Gross Profit/ (loss)	1,437,077	5,663,955	-74.63%
Administrative Expenses	(542,395)	(329,624)	64.55%
Selling And Distribution Expenses	(179,516)	(143,185)	25.37%
Other Income	299,304	338,508	-11.58%
Other Operating Expenses	(3,473)	(354,278)	-99.02%
Finance Cost	(2,125,706)	(1,558,587)	36.39%
Profit/ (loss) before taxation	(1,114,709)	3,405,458	-
Taxation	634,222	(1,849,845)	-
Net profit/ (loss) for the period	(480,487)	1,643,700	-
Basic earnings/ (loss) per share	(0.53)	1.48	-

Amount in thousand except for EPS

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