EPCL posts a massive 86% YoY decline in half-year profits

August 7, 2020 (MLN): Engro Polymer and Chemicals Limited (EPCL) has unveiled its financial results for the six months ended June 30, 2020.  As per results, the company has posted net profits of Rs 222 million, depicting the colossal decrease of 85.59% YoY when compared to net profits of Rs 1.54 billion in the same period last year. 

This has translated into earnings per share which clocked in at Rs 0.24 against Rs 1.70 in the aforementioned period.

The massive decline in earnings seen in the financial results below is a result of lower volumetric sales during the period, owing to lower economic activity stemming from the COVID-19 pandemic. The gross profits of the company came down by 51% YoY. As a result of this, the gross margins shrank from 20.89% to 14.80%.

As per the financial statement issued by the company, some of the positive highlights include a decrease in distribution & marketing expenses and other operating expenses by 24% YoY and 41% YoY respectively while other income of the company surged by 57% YoY to Rs 687 million.

The other major highlight is the colossal finance cost which increased by around 88% YoY from Rs 727 million to Rs 1.36 billion when compared to the prior year, hurting the financial stability of the company.

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