ICI Pakistan Limited (ICI) is scheduled to announce its 4QFY21 financial result on Aug 5th, 2021. We expect the company to post a profit after tax (PAT) of PKR 1,536mn (EPS: PKR 16.64) compared with profit after tax of PKR 144mn (EPS: PKR 1.56) during same period last year. The rise in earnings is expected due to low base on account of lock down during same period last year along with improved margins of PSF, Soda Ash, life Sciences and Animal Health Segment.

Sales are expected to increase by 71% YoY to PKR 18bn, while on QoQ basis revenue is expected to increase by 3%. The rise in sales is expected due to higher sales in all segments due to low base. Gross margins are expected to increase by 389bps YoY on account of better performance expected in the PSF and Animal Health segment, we view.

Moreover, lower interest rates are set to compress finance costs of the company (down by 56% YoY during 4QFY21 to PKR 197mn). We expect the company to announce a cash dividend of PKR 10/share taking the total payout for FY21 to PKR 30/share.

Courtesy – AHL Research