Engro Polymers and Chemicals Limited (EPCL), a subsidiary of Engro Corporation Limited, sustained losses to the tune of Rs688.4 million during the quarter ended June 30, 2024, amid lower revenue and higher cost of sales.

During the same period last year, the company clocked in a profit of Rs1.56 billion on a consolidated basis.

Its Board of Directors in a meeting held on Thursday reviewed the financial performance of the company for the period ended June 30, 2024.

EPCL’s gross profit stood at Rs1.44 billion in the quarter, as compared to Rs5.66 billion, a massive fall of nearly 75%.

EPCL suffers loss of Rs901mn in three months of 2024

The company’s net revenue decreased by over 6% to Rs17.81 billion, as compared to Rs19.04 billion recorded in the previous year. However, cost of sales inched up to Rs16.4 billion, a jump of over 22%, compared to Rs13.4 billion recorded in the same period last year.

During the period, the company’s other expenses declined to Rs30.25 million, as compared to Rs380.12 million in same period of the previous year.

Meanwhile, finance costs jumped from Rs1.55 billion to Rs2.12 billion, an increase of over 37%. This increase can be attributed to a rise in interest rate during the period.

Resultantly, the company posted a loss-before-tax of Rs1.35 billion as compared to a profit-before-tax of Rs3.2 billion in the same period last year.

The company’s loss per share (LPS) basic stood at Re0.76 per share, against earning per share of Rs1.39 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.