LOTCHEM is scheduled to announce its financial results for 1QCY21 on Apr 22nd, 2021. We expect the company to post a profit after tax of PKR 1,726mn (EPS: PKR 1.14), up by 30x YoY during 1QCY21 compared to PKR 58mn (EPS: PKR 0.04) during 1QCY20. During 1QCY21, sales are expected to increase by 20% YoY due to 11% YoY rise in PTA prices along with higher production. Gross margins are expected to settle at 16.9% compared to -1.0% during the same period last year. The rise in gross margins is expected due to 44% YoY increase in PTA margins to USD 135/ton compared with USD 94/ton during 1QCY20. Moreover, other income is expected to decrease by 12% YoY to PKR 302mn during 1QCY21 due to lower interest rates.

Courtesy – AHL Research