Lotte Chemical Pakistan Limited (LOTCHEM) announced its 1QCY24 financial result today. The company posted a profit after tax (PAT) of PKR 897mn (EPS: PKR 0.59), down by 65% YoY compared to PKR 2,542mn (EPS: PKR 1.68) during SPLY. On a sequential basis, earnings were up by 4x QoQ. Alongside the result, the company announced an interim cash dividend of PKR 0.50/share.

Result Highlights       

Net sales during 1QCY24 climbed up by 46% YoY to PKR 32,277mn amid increase in PTA volumes tagged with Pak Rupee depreciation. On a QoQ basis, the topline surged by 66% YoY due to higher volumetric sales as the plant remained operational throughout the quarter while a 26-day plant shutdown was observed in 4Q.

The gross profit margin in 1QCY24 arrived at 5.2% compared to 20.1% during SPLY. The fall in margins was witnessed owing to 18% YoY decline in international PTA margins and an increase in gas prices.

The company booked a finance cost of PKR 223mn during 1QCY24, showing a hefty decline of 65% YoY on account of the absence of exchange loss in the quarter.

Other income reduced by 40% YoY to PKR 351mn during 1QCY24 due to lower short-term investments.

The company booked effective taxation at 39% in 1QCY24 vis-à-vis 33% in 1QCY23.

Courtesy – AHL Research