Pakistan’s leading PVC manufacturer Engro Polymer and Chemical Limited (EPCL) has announced a net profit of Rs7.26 billion, which translates into Earnings Per Share (EPS) of Rs7.99 for the first half of Calendar Year 2021 (CY21).
This is a significant growth over the figures from the same period of CY21, which reported net profits of Rs222.6 million and the Earnings per Share of 24 paisas.
This has led EPCL to declare a cash dividend of Rs7 per share along with the financial results for the half-year ended June 30, 2021, which is in addition to an interim dividend of 8 paisas/share already paid to the shareholders.
Experts believe that the increase in earnings is attributed to the increase in sales by 137 per cent due to an increase in the prices of PVC, and growth in production, as compared to last year.
It is worth mentioning that the manufacturing sector saw a halt in production last year due to pandemic-related restrictions in the country.
When we compare the second quarter of CY21 with that of CY20, we see that the EPCL saw a net profit of Rs3.12 billion and the EPS of Rs3.44 this year compared to a profit of Rs29.78 million and the EPS of 3 paisas in 2020.
On the Quarter-on-Quarter (QoQ) basis, EPCL announced 2QCY21 Net-PAT of Rs3.12 billion and EPS of Rs3.44, down 25% QoQ.
AKD analysts wrote that the result was much below their expectation of Rs5.17 billion and EPS of Rs5.70, majorly due to lower than expected revenues.
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They believe that low demand resulted in below than 80% of assumed capacity utilization of PVC Line I, II & III.
Experts believed that despite the overall market doing poorly over this time, EPCL’s captured market has reached 33 per cent.
On the 12th of August, the Cement sector in Pakistan was down 359.21, when it opened at 65,503.2 and was trading around 65,144 points at 3 PM.
Other noticeable declarations
Attock Petroleum Limited has announced the dividend at Rs24.5 per share. The company posted profit-after-tax(PAT) of Rs4.9 billion and EPS at Rs49.43 for the year ending 30th June 2021. This went up from PAT of Rs1bn and EPS at Rs10.13 last year, showing that company profits grew 4.8 times.
Pakistan Oilfields Limited (POL) declared the final cash dividend at Rs30 per share. The company announced its PAT at Rs13.38 billion, with EPS at Rs47.14 compared to PAT of Rs16.38 billion and EPS at Rs57.69 last year. POL showed a decrease in profits Year-on-Year(YoY), leading to lower EPS.
Attock Cement Limited (ACL) declared its dividend at Rs4 per share. The company posted PAT of Rs1.11 billion and EPS of Rs8.04 for the FY21, which was comparable to PAT of Rs1.11 billion and EPS of Rs8.06 for the FY20.
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