EPQL’s yearly profits plunge by 23% on lower margins

February 08, 2022 (MLN): Engro Powergen Qadirpur Limited (EPQL) has registered a net profit worth Rs1.59 billion (EPS: Rs4.92) for the year ended December 31, 2021, depicting a decline of 23% YoY against the net profit of Rs2.08bn due to lower gross margins, the company’s financial statement sent to Exchange said.

In conjunction with financial results, the company recommended a final cash dividend for the year ended December 31, 2021, at Rs6 per share i.e., 60%. This is in addition to the interim cash dividend for the half-year ended June 30, 2021, already paid at Rs. 1.5 per share i.e. 15%.

During the calendar year 2021, the top line of the company witnessed a 26% YoY jump to stand at Rs10.2bn due to higher dispatch which was partly offset by higher cost of sales. Consequently, gross profit fell by 20.5% YoY to Rs1.38bn, squeezing margins by 8ppt to 14% during the said period.

On the expense front, the company’s administrative expenses climbed by 62% YoY to Rs168mn during CY21. On the contrary, the other expenses of the company dropped by around 15%.

The company witnessed a considerable decline in its other income by 95% to Rs4.09mn, which also affected the company’s profitability.  Meanwhile, the company’s net finance income inched lower by 3% YoY to Rs433mn.

Going by the financial statement, the positive highlight was a colossal decline in tax expenses by 87% YoY, providing some solace to the financial health of the company.

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