{"id":10601,"date":"2025-07-28T11:49:08","date_gmt":"2025-07-28T06:49:08","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10601"},"modified":"2025-07-28T11:49:10","modified_gmt":"2025-07-28T06:49:10","slug":"epcl-is-expected-to-report-another-quarterly-loss-in-2qcy25","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/epcl-is-expected-to-report-another-quarterly-loss-in-2qcy25\/","title":{"rendered":"EPCL is expected to report another quarterly loss in 2QCY25"},"content":{"rendered":"\n

Engro Polymer & Chemicals Ltd (EPCL<\/a>) <\/strong>is likely to post a loss of Rs1.18 per share in the second quarter of 2025 (2QCY25), showing a deeper loss than both last year and the previous quarter. The company\u2019s after-tax loss is expected to reach Rs1.1 billion, compared to Rs825 million in 1QCY25 and Rs688 million in the same quarter last year.<\/p>\n\n\n\n

What\u2019s going wrong?<\/h2>\n\n\n\n

The main reasons behind the weak results are:<\/p>\n\n\n\n

    \n
  • Lower product prices<\/strong>: International PVC prices have dropped by 14% year-on-year (YoY) and 6% quarter-on-quarter (QoQ), landing at around $700 per ton.<\/li>\n\n\n\n
  • Falling margins<\/strong>: The difference between PVC and its raw material ethylene (called the core delta<\/em>) has shrunk by 18% YoY and 8% QoQ.<\/li>\n\n\n\n
  • Low sales<\/strong>: EPCL\u2019s revenue is expected to decline slightly by 2% both YoY and QoQ to Rs17.5 billion.<\/li>\n\n\n\n
  • Higher admin costs<\/strong>: Administrative expenses have increased by 11% YoY.<\/li>\n<\/ul>\n\n\n\n

    All of this has pushed gross margins<\/strong> (how much profit the company earns after covering basic costs) down to just 7%<\/strong> in 2QCY25, compared to 8.1%<\/strong> last year.<\/p>\n\n\n\n

    Any good news?<\/h2>\n\n\n\n

    Yes, a few things are going right:<\/p>\n\n\n\n

      \n
    • Lower finance costs<\/strong>: Due to falling interest rates and lower debt, EPCL\u2019s financial charges are expected to drop by 36% YoY<\/strong>.<\/li>\n\n\n\n
    • Sales & distribution costs are under control<\/strong>: These expenses are down 27% YoY<\/strong>.<\/li>\n<\/ul>\n\n\n\n

      However, the positive impact from these savings isn\u2019t enough to offset the pressure from falling prices and margins.<\/p>\n\n\n\n

      EPCL continues to struggle with global price pressures and weaker margins. The company has now reported back-to-back quarterly losses, and until PVC prices recover or margins improve, profitability will remain under pressure.<\/p>\n\n\n\n

      Source: Insight Securities (Private) Limited <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Engro Polymer & Chemicals Ltd (EPCL) is likely to post a loss of Rs1.18 per share in the second quarter of 2025 (2QCY25), showing a deeper loss than both last year and the previous quarter. <\/p>\n","protected":false},"author":9252,"featured_media":6669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[44],"class_list":["post-10601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-epcl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/EPCL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/EPCL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/EPCL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/EPCL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10601"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10601\/revisions"}],"predecessor-version":[{"id":10602,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10601\/revisions\/10602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6669"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}