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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Posted on: 2024-08-16T09:16:24+05:00
