Engro Polymer’s profits evaporate in 3QFY24, LPS hits Rs1.08

April 22, 2024 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) reported its profit and loss statement for the third quarter of FY24, wherein the loss after tax clocked in at Rs784.32 million [LPS: Rs1.08] compared to a profit of Rs1.19 billion [EPS: Rs1.31] in the same period last year (SPLY).

Going by the unconsolidated results, the company's top line fell by 7.9% YoY to Rs16.56bn as compared to Rs17.98bn in SPLY.

Moreover, the cost of sales rose by 7.7% YoY, hurting the gross profit by 70.4% YoY to Rs1.06bn in 3QFY24.

The gross margins worsened significantly to 6.42% as compared to 19.97% in SPLY.

During the period under review, other income decreased by 34.9% YoY to stand at Rs285.11m in 3QFY24 as compared to Rs437.84m in SPLY.

On the expense side, the company observed a rise in administrative expenses by 2.48x YoY while reducing its other expenses by 97.3% YoY to clock in at Rs677.49m and Rs20.97m respectively during the review period.

The company’s finance cost went up by 42.3% YoY and stood at Rs1.66bn as compared to Rs1.17bn in SPLY, mainly due to higher interest rates.

On the taxation front, the company earned a tax credit worth Rs371.38m, as against a tax expense worth Rs488.99 paid in the same quarter of last eyar.

Amount in thousand except for EPS

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