During FY21, experts expect the company to report a PAT of PKR 23.7bn (EPS: PKR 50.58) compared to loss after tax of PKR 6.5bn (LPS: PKR 13.77) in FY20. This is attributable to volumetric growth of 24% YoY (FO, HSD and MS volumes increased by 90%, 20% and 19% YoY) and inventory gains of PKR ~11.3bn expected in the period under review compared to inventory loss of PKR ~20.5bn in same period last year resulting in improvement of gross margins by 314bps YoY to 4.24%.

On a quarterly basis, topline of the company is anticipated to increase by 69% YoY to PKR 373bn (highest ever quarterly sales) due to 32% YoY growth in petroleum products and surge in prices of petroleum products. Gross margins are expected to settle at 3.81% amid volumetric growth coupled with inventory gain of PKR ~2.4bn compared to inventory loss of PKR ~15.5bn in SPLY.

Finance cost is expected to drop by 34% YoY to PKR 1.9bn due to reduction in interest rates and lower level of short term borrowings.

Courtesy – AHL Research