Engro Polymer & Chemicals (EPCL) has announced its 4QCY20 financial results. The Company has posted a consolidated profit of Rs3.627 billion (EPS: Rs3.99), up 311%YoY and 93%QoQ. This takes full-year 2020 earnings to Rs6.30/share, up 55%YoY.
The result can be termed higher than expectations mainly due to higher-than-expected gross margins.
Along with the result, the Company has also announced a final cash dividend of Rs1.247/share.
Net sales of the Company increased by 24%YoY during the quarter, primarily due to: 1) increase in PVC prices by 32%YoY to US$1,108/ton and 2) a 3%YoY devaluation of PKR against US$.
Gross margins during 4QCY20 increased to 47% as compared to 21% for 4QCY19 amid improvement in core delta.
Core delta during 4QCY20 clocked in at US$689/ton as compared to US$457/tons for the same period last year, up 51% YoY.
Financial charges declined by 38%YoY mainly due to lower interest rates.
Effective tax rate inched higher to 32% for 4QXY20, from 29% for 4QCY19.