October 18, 2021 (MLN): Engro Polymer (EPCL) announced its 9MCY21 financial results today, where the company has reported around a fivefold jump in net consolidated profit to Rs10.37 billion (EPS: Rs11.41) compared to Rs2.10bn (EPS: Rs2.31) in 9M2020.
This robust increase in profits was largely in line with market expectations, thanks to higher volumetric sales along with higher PVC prices.
During the period under review, net sales revenue grew by around 2.15x YoY to Rs49.32bn due to growth in volumes along with higher PVC prices. Resultantly, the gross profit margins expanded to 34% from 22% as the company’s PVC production and sales took a hit due to petrochemical plant disruption amid COVID-19 lockdown during 9MCY20.
On the expense front, the distribution and marketing expenses surged by 28.5% YoY, administrative cost by 25.4% YoY while other expenses by 2x YoY during 9MCY21 due to exchange losses.
While notably, due to the lower interest rate environment, the finance cost dipped by 23% YoY to clock in at Rs1.40bn, providing some more strength to the bottom line. Meanwhile, the effective tax rate for the said period clocked in at 26% against 28% in 9MCY20.
Alongside financial results, the board of directors has announced an interim cash dividend for ordinary shareholders for the 3QCY21 of Rs3 per share i.e. (30%). This is in addition to the interim dividend already paid at Rs7.80 per share i.e., 78%.
|
Consolidated Profit and Loss Account for the nine-months ended September 30, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Sep-21 |
Sep-20 |
% Change |
|
Net revenue |
49,322,813 |
22,931,520 |
115.09% |
|
Cost of sales |
(32,627,466) |
(17,808,687) |
83.21% |
|
Gross profit |
16,695,347 |
5,122,833 |
225.90% |
|
Distribution and marketing expenses |
(258,458) |
(201,089) |
28.53% |
|
Administrative expenses |
(462,748) |
(369,142) |
25.36% |
|
Other expenses |
(1,499,946) |
(742,725) |
101.95% |
|
Other income |
970,495 |
930,661 |
4.28% |
|
Operating profit |
15,444,690 |
4,740,538 |
225.80% |
|
Finance costs |
(1,401,748) |
(1,820,605) |
-23.01% |
|
Profit for the period before taxation |
14,042,942 |
2,919,933 |
380.93% |
|
Taxation |
(3,671,093) |
(816,624) |
349.55% |
|
Profit for the period after taxation |
10,371,849 |
2,103,309 |
393.12% |
|
Earnings per share – basic (Rupees) |
11.41 |
2.31 |
393.94% |
|
Earnings per share-diluted (Rupees) |
8.58 |
2.31 |
271.43% |
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