October 15, 2020 (MNL): Engro Polymer and Chemicals Limited (EPCL) has made profits of Rs. 2.1 billion (EPS: 2.31) during the nine months ended September 30, 2020, i.e. around 25% lower as compared to the same period of last year.
Despite an increase in the prices of local PVC, the net sales of the company fell by 19% owing to disruption in business activities caused by the outbreak of COVID-19. While a decline of 18% in cost of sales provided some respite, the gross margins fell by 15.4%.
The non-core income, however, showed an improvement of 31% on account of higher exchange gains earned by the company as compared to the last year.
The finance cost showed an increase of 51% in spite of lower interest rate regime.
The company also announced that its subsidiary, Engro Peroxide (Private) Limited, will be resuming work on earlier announced Hydrogen peroxide project in the last quarter of 2020. As per the revised timeline, the Project is expected to achieve COD towards the end of 2020, the announcement added.
Consolidated Financial Results for the nine months ended September 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Sep-20 | Sep-19 | % Change | |
Sales | 22,931,520 | 27,834,222 | -17.6% |
Cost of sales | (17,808,687) | (21,779,837) | -18.2% |
Gross Profit | 5,122,833 | 6,054,385 | -15.4% |
Distribution and marketing expenses | (201,089) | (229,472) | -12.4% |
Administrative expenses | (369,142) | (425,017) | -13.1% |
Other expenses | (742,725) | (1,106,104) | -32.9% |
Other income | 930,661 | 710,679 | 31.0% |
Finance cost | (1,820,605) | (1,199,902) | 51.7% |
Profit before taxation | 2,919,933 | 3,804,569 | -23.3% |
Taxation | (816,624) | (990,086) | -17.5% |
Profit after taxation | 2,103,309 | 2,814,483 | -25.3% |
Earnings per share | 2.31 | 3.1 | -25.5% |
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