EPQL witnessed a drop of 18 percent in its sales for the period 9MFY16 as compared to the corresponding period in the previous year. The loss in revenue could be attributed to a decrease in the load factor which affected plant operations in 1HFY16. The decrease in the load factor was due to NTDC’s auto transformer issue which caught fire and went out of operation during the start of 2016. This meant the plant was on standby mode until the completion of transformer repair and resumed its normal operations from April 29, 2016 onwards according to the previous quarter’s director report.

The gross profit recorded minimal change although according to a note by the company the fact that the company was issued a higher Period Weighting Factor (PWF) in 1HFY16 meant a reversal of Rs330 million in 2HFY16 due to a subsequently lower PWF which will lower the company’s profitability as compared to the previous half. The gross profit margin increased by 400bps whereas the net margin saw a rise of 500 bps in 9MFY16 as compared to the previous year.

Administrative expenses for 9MFY16 saw an increment of 11 percent whereas other expenses surged by 35 percent as compared to 9MFY15. The real eye catcher in the result would be the massive inflow of other income as compared to the same period last year which managed to propel EPQL to record a 5 percent surge in its profit from operations. According to the previous quarter director report this other income included insurance income for settlement of repair expenditure as well as business interruption loss suffered by EPQL in 2014-15. Furthermore as the financing cost was brought down by 16 percent the final impact resulted in an increase in the bottom-line of 9 percent and an EPS of Rs4.72 as compared to Rs4.32 in 9MFY15.

EPQL will receive uninterrupted supply of permeate gas in the remaining financial year as well. As gas power plants have higher efficiencies and reasonable tariffs, EPQL is likely to perform on a steady note. In addition with the up-gradation of the NTDC grid the company hopes for uninterrupted dispatch for the next quarter as well.



=================================================

ENGRO POWERGEN QADIRPUR LIMITED 9MFY16

=================================================

Rs. (Mn) 9MFY16 9MFY15 chg

=================================================

Sales 8106 9921 -18%

Cost of sales -6275 -8085 -22%

Gross profit 1831 1836 -0.3%

Administrative expenses -137 -123 11%

Other expenses -2.83 -2.09 35%

Other income 99.3 1.31 7457%

Profit from operations 1791 1712 5%

Finance cost -264 -314 -16%

Profit for the period 1527 1398 9%

EPS (Rs) 4.72 4.32 9%

Gross margin 23% 19% up

400 bps

Net margin 19% 14% up

500 bps

-------------------------------------------------

Source: PSX Notice.

=================================================