Engro Polymer & Chemicals Limited (EPCL): 1Q2024 Corporate Briefing Key Takeaways – By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Engro Polymers and Chemicals (EPCL) revenue on a consolidated basis declined by 8% YoY to Rs16.6bn in 1Q2024. Main reason for decline in revenue are PVC volumes declining by 13.5% YoY in 1Q2024. Decline in international PVC prices by average of US$ 108/ton in 1Q2024 compared to 1Q2023 also led to lower revenues.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Gross Margins in 1Q2024 stood at 6.4% vs. 27.0%/20.0% in 4Q2023/1Q2023. Reason for lower gross margins on YoY basis were (1) lower PVC-Ehylene margins (Core Delta) of US$332/ton (vs. US$ 453/ton in 1Q2023), and (2) Higher cost of gas. While on QoQ basis GP margins were lower as company reversed in extra provision of increase in gas cost book...