Engro Polymer earns profit of Rs3.10 billion

KARACHI: Engro Polymer and Chemicals Limited (EPCL) has declared a cash dividend of Rs3/share for the quarter ended September 30, 2021, which is in addition to the interim dividend of Rs7.85/share already paid to the shareholders.

EPCL announced a net profit of Rs3.106 billion, translating into the earnings per share (EPS) of Rs3.42 for the quarter under review, which is 64.8 per cent higher than the profit of Rs1.88 billion and EPS of Rs2.07 in the corresponding quarter last year. During the nine months of CY21, the profits surged 398 per cent to Rs10.372 million (EPS: Rs11.41).

During the quarter, the net sales witnessed an increase of 87 per cent to settle at Rs18.827 million, mainly attributable to higher volumetric sales along with higher PVC prices. During the nine months of CY21, the sales went up 115 per cent due to the aforementioned reason.

The gross margins of the company went down 4pps to 27.8 per cent during the quarter. “The decline in [the] gross margins was witnessed due to lower price premium, we view. However, PVC margins had undergone an increase of 66 per cent,” an analyst at Arif Habib Limited said.

Other income increased 53 per cent to Rs373 million led by higher level of investments, while finance costs increased 7 per cent to Rs487 million due to the higher level of borrowings.