Author Topic: EPCL -- Engro Polymer and Chemical Limited  (Read 248869 times)

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Offline HellBorne

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1019 on: August 07, 2019, 03:09:40 AM »
Beats lowest estimate. FX losses and financial charges (would apply to all companies having financial leverage and with exposure to USD).

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1019 on: August 07, 2019, 03:09:40 AM »

Offline Farzooq

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1020 on: October 11, 2019, 12:37:49 PM »
EPCL: 3QCY19 earnings to up by 41% YoY

Engro Polymer and Chemical (EPCL) is scheduled to announce its financial result for 9MCY19 on October 15th, 2019. We expect the company to post a profit after tax of PKR 1,528mn (EPS: PKR 1.68) during 3QCY19 which is 41% YoY higher than 3QCY18 earnings. This takes 9MCY19 profitability to PKR 3,068mn (EPS: PKR 3.37), expected to go down by 21% YoY. During 3QCY19, the rise in earnings is primarily driven by 53% rise in PVC margins to an average of USD 477/ton compared to USD 311/ton during 3QCY18. On the back of higher PVC margins, gross margins are expected to increase by 582bps to 29.9% in 3QCY19. Other income is expected to increase by 139% to PKR 306mn attributable to income from short term investments. Finance costs are expected to increase by 156% to PKR 392mn due to higher interest rates.
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Offline rashid.Maria

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1021 on: October 11, 2019, 08:08:21 PM »
EPCL: 3QCY19 earnings to up by 41% YoY

Engro Polymer and Chemical (EPCL) is scheduled to announce its financial result for 9MCY19 on October 15th, 2019. We expect the company to post a profit after tax of PKR 1,528mn (EPS: PKR 1.68) during 3QCY19 which is 41% YoY higher than 3QCY18 earnings. This takes 9MCY19 profitability to PKR 3,068mn (EPS: PKR 3.37), expected to go down by 21% YoY. During 3QCY19, the rise in earnings is primarily driven by 53% rise in PVC margins to an average of USD 477/ton compared to USD 311/ton during 3QCY18. On the back of higher PVC margins, gross margins are expected to increase by 582bps to 29.9% in 3QCY19. Other income is expected to increase by 139% to PKR 306mn attributable to income from short term investments. Finance costs are expected to increase by 156% to PKR 392mn due to higher interest rates.

Huge volume  today  15 oct ko result  hai

Offline Mightee

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1022 on: October 14, 2019, 10:34:03 AM »
Kaafi Accumulation ho gayi hai 28.00 k around.

Online aatradekhi

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1023 on: October 15, 2019, 01:06:05 PM »
Financial Announcements
Engro Polymer & Chemicals Ltd. Unconsolidated Nine Month Results Sep 2019
EPS 3Q = Rs 1.43
EPS Uptill 9M = Rs 3.12
Interim Dividend= Rs 0.60
9M Growth = (26%)
Last 9M EPS = Rs 5.02
The Share Transfer Books of the Company will be Closed from 14/11/2019 To 20/11/2019

Offline Farzooq

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1024 on: October 15, 2019, 05:03:41 PM »
EPCL: Profit improvement witnessed owing to improved delta

Engro Polymer and Chemicals Ltd (EPCL) announced its 3QCY19 results wherein the company posted earnings of PKR1.27bn (EPS: PKR1.40). Along with the result the company announced interim cash dividend of PKR0.6/sh in contrast to our expectations of no dividend.
During 9MCY19, EPCL reported earnings at PKR3.1/sh down 27% YoY despite 9% jump in revenues and primary delta averaging at USD439/ton compared to USD322/ton in SPLY. This was largely from one-offs due to exchange loss and plant turnaround cost hampering profitability.
Topline of the company stood at PKR9.2bn, up 10% YoY in 3QCY19 amounting to PKR27.8bn in 9MCY19. This is likely attributable to better PVC prices realized while volumes tapered.
Gross margins stood at 24% for the quarter, up 2.4pps sequentially. We attribute the same to a 7% QoQ drop in ethylene rates for the South East Asian region.
3QCY19 saw financial charges rise to PKR472mn, up by 3/208% QoQ/YoY, on the back of increase in interest rates.
We have a Buy stance on the scrip. Key risks to our thesis include: (i) volatility in PVC-Ethylene margins and (ii) adverse changes in duty structure.
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Offline Farooq Qadir

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1025 on: October 17, 2019, 12:00:50 PM »

AKD Daily

EPCL: 3QCY19 Analyst Briefing Takeaways

•         Engro Polymer Chemical Ltd (EPCL) held its analyst briefing yesterday to discuss the financial performance during 9MCY19 (EPS: PKR3.12, down 26% YoY). For 3QCY19 only, EPCL posted 20% YoY higher NPAT of PKR1.3bn (EPS: PKR1.43); on sequential basis, the earnings were up by 2.9x, courtesy absence of one-off FX losses recorded in 2QCY19.

•         The PVC and caustic soda volumetric sales witnessed a 4.6% YoY decline during 9MCY19. This was more than offset by PKR devaluation leading to 9%YoY higher topline.

•         However, (i) 336 bps YoY decline in gross margin to 23.3%, (ii) 2.3x YoY higher other operating expenses, (iii) 2.64x YoY higher finance cost and, (iv) higher effective tax rate of 26% during the period vs. 22% in 9MFY18, dragged 9MCY19 bottomline.

•         EPCL has also implemented IFRS 15 and 16 effective Jun’19, where the latter will adversely impact earnings on a recurring basis due to recognition of lease liability. Meanwhile, IFRS 15 implementation will keep the GMs depressed due to reclassification of distribution expense as COGS.


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Offline Mohammad Zafar Siddiqui

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1026 on: October 17, 2019, 12:06:04 PM »
 BHAI KOI MUJHE DSFL KE NEWS DEDE

Offline Farzooq

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Re: EPCL -- Engro Polymer and Chemical Limited
« Reply #1027 on: October 17, 2019, 04:58:23 PM »
EPCL- Analyst briefing takeaways

Engro Polymer and Chemicals Ltd. (EPCL) conducted its analyst briefing on its 9MCY19 results and provided update on various developments.
The management highlighted; (i) slowdown in volumetric sales, (ii) higher gas charges, and (iii) presence of one-off item (IFRS 16 implementation cost) as prime reasons for 27% YoY attrition witnessed in 9MCY19 earnings (EPS: PKR3.1 vs. PKR4.25) despite PVC-Ethylene delta at USD480/ton, up 13% QoQ.
Slowdown in economic activity coupled with stringent documentation regulations on sales above PKR50k has dented volumetric offtake that stood at 142k tons (9MCY18:149k tons) and 61k tons (9MCY18:64k tons) for PVC and caustic soda, respectively.
The primary delta of PVC-Ethylene has risen to an average of USD439/ton, up 36% YoY, during 9MCY19 however, the same has not translated to profitability. Ethylene procurement has diverted from traditional suppliers owing to unavailability of plant. This has led to higher freight and lower realized delta.
Once supplies normalize from traditional suppliers, it may transpire to improvement in margins and profitability of the company.
PVC expansion project (100k tons) remains on track for the company with expected completion by 4QCY20. Around 50% of the capex has been incurred for the said project.
We have a Buy stance on the scrip. Key risks to our thesis include: (i) volatility in PVC-Ethylene margins and (ii) adverse changes in duty structure.
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