External broker reports(aggregated public sources), Topline Securities

Topline Securities

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Equity Bottom-Up

Engro Polymer & Chemicals  / Equity Bottom-Up

<ul><li>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.</li><li>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 booked in 3Q2023.</li><li>EPCL gas cost in 1Q2024 stood on average at Rs3,000/MMBTU compared to Rs2,500/MMBTU in 1Q2023. Company received a 60/40 ratio of Local Gas/RLNG in 1Q2024.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

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.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 booked in 3Q2023.EPCL gas cost in 1Q2024 stood on average at Rs3,000/MMBTU compared to Rs2,500/MMBTU in 1Q2023. Company received a 60/40 ratio of Local Gas/RLNG in 1Q2024.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Engro Polymers and Chemicals (EPCL) - Corporate Briefing Key Takeaways