Engro Polymer incurs Rs480m loss in three months

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.

Amount in thousand except for EPS

Copyright Mettis Link News