Engro Polymers and Chemicals Limited (EPCL), a subsidiary of Engro Corporation Limited, sustained losses to the tune of Rs901.24 million during the quarter ended March 31, 2024 amid lower revenue and higher cost of sales.

During the same period last year, the company clocked in a profit of Rs1.18 billion on a consolidated basis.

Its Board of Directors in a meeting on Friday reviewed the financial performance of the company for the period ended March 31, 2024.

EPCL’s gross profit stood at Rs1.06 billion in the quarter, as compared to Rs3.6 billion, a massive fall of over 70%.

Engro Polymers and Chemicals: profit plunges 33% as high finance costs bite

The company’s net revenue decreased by nearly 8% to Rs16.57 billion, as compared to Rs17.98 billion recorded in the previous year. However, cost of sales inched up to Rs15.5 billion, compared to Rs14.4 billion recorded in the same period last year.

Meanwhile, finance costs jumped from Rs1.18 billion to Rs1.67 billion, an increase of nearly 42%. This increase can be attributed to a rise in interest rate during the period.

Resultantly, the company posted a loss-before-tax of Rs1.27 billion as compared to a profit-before-tax of Rs1.67 billion in the same period last year.

The company’s loss per share (LPS) basic stood at Rs1.21 per share, against earning per share of Rs1.30 per share in the same period last year.

EPCL is a manufacturer of Poly Vinyl Chloride, Vinyl Chloride Monomer, caustic soda and other related chemicals. The company is also engaged in the supply of surplus power generated from its power plants to Engro Fertilizers Limited.