Hifsa Raja

Engro Polymer & Chemicals Limited’s gross profit stood at Rs20 million in the first nine months (Jan-Sept) of 2022, showing a growth of 21% over Rs16 million in the corresponding period of the previous year. As such, the operating profit increased 11% year-on-year to Rs17 million in 9MCY22 from Rs15 million in 9MCY21. Similarly, the before-tax profit edged up to Rs14.88 million during the nine-month period of CY22 from Rs14.04 million in the corresponding period of CY21. However, the after-tax profit stood at Rs9 million in 9MCY22, down 10% from Rs10 million over the corresponding period of CY21, reports WealthPK.

Performance in 2021

During 2021, the company earned a gross profit of Rs24 million against Rs10 million in 2020, registering an increase of 120%.  The company’s operating profit stood at Rs21 million in 2021 compared to over Rs10 million in 2020.  The before-tax profit was Rs19 million in 2021 compared to Rs8 million in 2020. The after-tax profit for 2021 was Rs15 million compared to Rs5 million in 2020.

The company maintained a steady increase in its earnings per share from 2018 to 2021, with a slight dip in 2019.

Shareholdings

Associated companies, undertakings, and related parties held 67.31% of the company's shares as of June 30, 2021. Banks, DFIs, NFC owned 1.81% of the shares, insurance companies 3.53%, mutual funds 8.12%, the general public 16.13%, and ‘others’ 3.05%.

Profit or loss

The gross profit ratio and net profit to sales kept on growing at a consistent pace from 2016 to 2021, barring 2019, where net profit to sales slowed due to the emergence of the Covid-19 pandemic.

About the company

Engro Polymer and Chemicals Limited was incorporated in Pakistan in 1997 under the now repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The company is a subsidiary of Engro Corporation Limited, which is owned by Dawood Hercules Corporation Limited. The company’s principal activity is to manufacture, market and sell Poly Vinyl Chloride (PVC), Vinyl Chloride Monomer (VCM), caustic soda and other related chemicals. The firm is also engaged in the supply of surplus power generated from its power plants to Engro Fertilisers Limited.

Credit : Independent News Pakistan-WealthPk