October 18, 2023 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) 's profitability tanked by 42.13% YoY in 9MCY23, clocking in its profit after tax at Rs5.39bn [EPS: Rs5.43] compared to a profit of Rs9.31bn [EPS: Rs9.91] in the same period last year (SPLY).
Along with the results, the company announced an Interim cash dividend for ordinary shareholders for the period ended September 30, 2023, Rs2.5 per share i.e. 25%.
This is in addition to the interim cash dividend already paid at Rs2.5 per share i.e. 25%.
The company also announced an Interim cash dividend for preference shareholders for the period ended September 30, 2023, Rs0.65 per share i.e. 6.50%.
This is in addition to the interim cash dividend already paid at Rs1 per share i.e. 10%.
Going by the results made available by the company on the PSX, the company's top line inched down by 0.43% YoY to Rs62.04bn as compared to Rs62.31bn in SPLY.
While the cost of sales rose by 10.27% YoY, which worsened the gross profit by 22.80% YoY to Rs15.57bn in 9MCY23.
During the period under review, other income dipped by 13.39% YoY to stand at Rs1.15bn in 9MCY23 as compared to Rs1.33bn in SPLY.
On the expense side, the company observed a rise in Distribution and marketing expenses by 2.44% YoY while other expenses declined by 39.05% YoY to clock in at Rs426.57m and Rs1.94bn respectively during the review period.
The company’s finance costs increased by 78.34% YoY and stood at Rs3.97bn as compared to Rs2.22bn in 9MCY23, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs4.11bn against the Rs5.58bn paid in the corresponding period of last year, depicting a fall of 26.39% YoY.
| Consolidated (un-audited) Financial Results for Nine months ended 30 September 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 62,038,106 | 62,308,363 | -0.43% |
| Cost of sales | (46,470,764) | (42,143,218) | 10.27% |
| Gross Profit | 15,567,342 | 20,165,145 | -22.80% |
| Distribution and marketing expenses | (426,567) | (416,387) | 2.44% |
| Administrative expenses | (896,792) | (789,141) | 13.64% |
| Other Income | 1,151,897 | 1,329,935 | -13.39% |
| Other expenses | (1,936,264) | (3,176,964) | -39.05% |
| Finance cost | (3,965,185) | (2,223,403) | 78.34% |
| Profit before taxation | 9,494,431 | 14,889,185 | -36.23% |
| Taxation | (4,107,590) | (5,580,175) | -26.39% |
| Net profit for the period | 5,386,841 | 9,309,010 | -42.13% |
| Basic earnings/ (loss) per share | 5.43 | 9.91 | – |
Amount in thousand except for EPS
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Posted on: 2023-10-18T09:38:43+05:00
