EFERT & EPCL 3QCY23 Result Previews ,(AKD Daily, Oct 11, 2023)
AKD Daily
EFERT & EPCL 3QCY23 Result Previews
EFERT—3QCY23 earnings expected to clock in at PkR5.28/sh: EFERT is going to announce their 3rd quarter results on Oct 12, 2023, wherein they are expected to announce a sizeable growth in EPS of 6x/69% QoQ/YoY. This is attributed to last quarter’s bottomline erosion due to supertax (ETR: ~85%) and current period’s healthy offtake numbers (Urea and DAP up by 35%/124% QoQ, respectively) alongside a rise in average retail prices all across the product portfolio. Gross margins are expected to clock in at 30.7% vs. 29.8% last quarter (up by 90/340bps QoQ/YoY), owing to higher prices and unchanged gas costs during the quarter. We expect other income to come in at PkR361mn (down by 19%QoQ) and finance cost to remain high at PkR1.2bn (up by 65%QoQ) due to a considerable fall in cash and cash equivalents leading to higher short term borrowings to finance working capital needs in a high interest rate environment. Tax rate is to remain at 39% due to imposition of 10% supertax. We expect the company to pay out a dividend of PkR4.75/sh, taking 9MCY23 pay out to PkR11.25/sh.
EPCL—3QCY23 EPS of PkR1.2 expected: The board of EPCL is scheduled to announce its 3QCY23 results on Oct 17th, where we expect the company to post a Profit after Tax of PkR1.4bn (EPS: PkR1.2) vs. PAT of PkR1.6bn (EPS: PkR1.3) in 2QCY23, a decline of 9%QoQ, due to gross margins contraction during the period. Topline is expected to shrink by 9%QoQ to clock in at PkR17.3bn vs. PkR19.0bn in the previous quarter, owing to decline in the PVC prices. Furthermore, gross margins are expected to shrink significantly to 21.7% during the quarter vs. 28.6%/29.4% in 2QCY23/SPLY. The said annual contraction is majorly attributable to a decline in the primary core-delta margins (US$401/ton in 3QCY23 vs. US$529/ton SPLY), and higher gas prices being charged at mixed rates in Aug-Sept’23 (25% RLNG & 75% indigenous gas rates). Finally, we expect company to pay dividend of PkR1.0/sh for the said quarter, taking nine-month dividend to PkR3.5/sh.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.