Engro Polymer & Chemicals Ltd. (EPCL), one of the leading chemical companies in Pakistan, recently announced its financial results for the second quarter of CY24 and the figures reveal a challenging period.
The company reported a Loss After Tax (LAT) of PKR 688 million, translating into an LPS of PKR 0.76.
This marks a significant downturn compared to the same quarter last year, where EPCL had posted a Profit After Tax (PAT) of PKR 1,562 million, with EPS at PKR 1.39.
Several key factors contributed to this sharp decline in profitability:
The current financial scenario for EPCL is undoubtedly challenging, but it also presents an opportunity for introspection and strategic realignment.
Engro group is currently going through some restructuring with its parent company Dawood Hercules (DAWH). It is also selling some of its assets. In a challenging business environment, it is hard to see when EPCL will turnaround.
However, one thing is clear the turnaround will only happen when international PVC margins improve substantially. Local construction demand is also important.
There doesn’t seem to be any upside trigger for the stock in the short term.
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May be later
Very well elaborated information...