EPCL books Rs488m loss in third quarter

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MG News | October 22, 2024 at 03:04 PM GMT+05:00

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October 22, 2024 (MLN): Engro Polymer and Chemicals Limited (PSX: EPCL) booked a loss of Rs487.65 million [LPS: Rs0.54] for the quarter ended September 30, 2024, compared to the profit of Rs2.64bn [EPS: Rs2.74] reported in the same period last year (SPLY).

According to the profit and loss account, the company's top line dropped 19.8% to Rs20.06bn as compared to Rs25.01bn in 3CY23.

The cost of sales rose by 2.3%, and combined with declining sales, this resulted in a gross profit decrease of 83.1% to Rs 1.1bn in Q3 CY24.

The gross margins worsened to 5.5% as compared to 25.9% in SPLY.

EPCL's other income grew 4.8% to stand at Rs391.87m in Q3 CY24 as compared to Rs373.77m in SPLY.

On the expense side, the company's administrative expenses rose 120% YoY to Rs512.41m, while distribution and marketing costs grew 19.5% YoY to Rs159.49m,

Conversely, other operating expenses fell 89.1% YoY to Rs87.8m.

Overall, expenses were a significant hurdle for the company as they surged, which, along with the drop in sales, worsened the situation further.

The company’s finance cost also rose by 58.7% and stood at Rs1.96bn as compared to Rs1.24bn in SPLY, mainly due to higher interest rates.

On the tax front, the company received a tax credit worth Rs746.79m against the Rs1.8bn paid in the corresponding period of last year.

Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000)
  Sep 24 Sep 23 % Change
Sales 20,063,368 25,011,993 -19.79%
Cost of sales (18,967,652) (18,545,735) 2.28%
Gross Profit/ (loss) 1,095,716 6,466,258 -83.05%
Administrative Expenses (512,413) (232,870) 120.04%
Distribution and marketing costs (159,493) (133,421) 19.54%
Other Income 391,865 373,769 4.84%
Other Operating Expenses (87,797) (803,350) -89.07%
Finance Cost (1,962,321) (1,236,509) 58.70%
Profit/ (loss) before taxation (1,234,443) 4,433,877 -
Final tax / levies 746,789 (1,796,188) -
Net profit/ (loss) for the period (487,654) 2,637,689 -
Basic earnings/ (loss) per share (0.54) 2.74 -

Amount in thousand except for EPS

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