Corporate results: Engro Polymer suffers Rs157m loss

Company’s earnings slump in 3QCY14.

KARACHI: Engro Polymer and Chemicals Limited posted a loss of Rs33 million or loss per share of Rs0.05 during the first nine months of 2014 compared to Rs552 million or an earnings per share (EPS) of Rs0.83 in the same period previous year. 

The company posted a net loss of Rs157 million in the third quarter that ended on September 30, compared to a profit of Rs127 million in the same period previous year.

Loss per share in the third quarter remained Rs0.24 during the third quarter of 2014, compared to the EPS of Rs0.19 in the comparative period previous year.



Despite higher polyvinyl chloride (PVC) and caustic soda prices, revenues of the company declined by 5% year-on-year to Rs17.14 billion during the nine months of 2014 due to lower volumetric sales.

Revenues declined by 20% quarter-on-quarter to Rs5.24 billion during the July-September period of 2014 because of lower volumetric sales as demand for PVC decreases during Ramazan and the monsoon season, Global Research reported.

Moreover, the current political scenario also contributed towards the company’s top-line decline during the period.

Gross margins of the company declined by 6% to 14% during the nine months of 2014 because of lower international PVC margins. On a quarterly basis, margins declined by 7% year-on-year to 15% because of lower primary margins and the imposition of 5% duty on the import of ethylene.

Financial charges of the company declined by 40% year-on-year to Rs678 million during the nine months of 2014 because of depreciation in Pakistani rupee.  On a quarterly basis, the company’s finance cost increased by 33% to Rs363 million during the third quarter of 2014.

Published in The Express Tribune, October 22^nd, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.