EFERT & EPCL 4QCY23 Result Previews ,(AKD Daily Feb 15, 2024)
EFERT & EPCL 4QCY23 Result Previews
EFERT 4QCY23 earnings to clock in at PkR7.48/sh: EFERT’s board is scheduled to announce their 4QCY23 result today, where we expect the company to report earnings of PkR10.0bn (EPS: PkR7.48) vs. PkR9.6bn (EPS: PkR7.18) in the preceding quarter, up 4.3%QoQ. The said increase is primarily attributable to the increased gross profit and higher other income. Topline is expected to increase by 5.9%QoQ to PkR70.1bn, where the rise in urea prices largely offset the impact of 13%QoQ decline in Urea sales. Additionally, 43%QoQ growth in DAP sales volumes also kept the topline elevated. Gross margins are likely to drop slightly to 30.7% vs. 31.7% in 3QCY23 due to a higher proportion of DAP sales, which have lower margins compared to urea. Furthermore, other income is expected to clock in at PkR1.7bn (↑125%QoQ), driven by the increased ST investments (PkR24.3bn in Sept’23 books vs. PkR2.7bn at Jun’23 end). Moreover, financial charges are expected to decline by 4.9%QoQ amid reduction in short-term borrowings. Overall, full year earnings accumulate to PkR18.75/sh vs. PkR11.99/sh in CY22, an increase of 56.4%YoY, driven by increased sales volumes and higher retention prices. Additionally, we expect company to an announce final cash dividend of PkR7.5/sh, taking the full year dividend to PkR20.0/sh.
EPCL’s 4QCY23 earnings are expected to clock in at PkR1.62/sh: EPCL will announce its 4QCY23 result sometime during current month, where we expect earnings of PkR2.0bn (diluted EPS: PkR1.62) vs. PkR2.6bn (EPS: PkR2.2) in the quarter before, down 26%QoQ. The said quarterly decline is primarily attributable to the expected decline in the sales volume and gross margin contraction. Topline is expected to clock in at PkR22.2bn vs. PkR25.0bn in the quarter before (↓11%QoQ), with PVC sales anticipated to decrease by 10%QoQ to 61k tons due to overall slowdown in construction in winters. Gross margins are expected to shrink to 23.2% from 26.1% in 3QCY23, mainly due to a 14% increase in gas prices from Nov’23. Additionally, we expect company to announce an final cash dividend of PkR1.5/sh, taking full year dividend to PkR6.5/sh.
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.