Lotte Chemical Pakistan Ltd Posts 60% Profit Growth in Q1

Lotte Chemical Pakistan Limited (LOTCHEM) has posted a profit after tax of Rs. 2.615 billion for the quarter that ended on March 31, 2022.

According to the company’s financial results, profit after tax saw a growth of 60 percent year-over-year (YoY), as compared to Rs. 1.639 billion in the same period last year. Along with the result, the company announced earnings per share (EPS) of Rs. 1.73 for the period in review, higher than market expectations.

Net sales of the company were increased by 39 percent YoY to Rs. 20.33 billion during 1QCY22 from Rs. 14.67 billion in the same period last year on account of higher PTA prices. On a quarter-on-quarter basis, net sales jumped by 7 percent.

Gross margins of the company went up by 4.3 percent YoY to 19.7 percent from 15.4 percent during the period in review. According to industry players, the growth was witnessed due to higher realized PTA margins.

On a wider scale, gross profits increased by 77 percent to Rs. 4.01 billion from Rs. 2.26 billion during the quarter. Likewise, the other income of the company went up by 35 percent to Rs. 376 million due to a higher level of short-term investments and higher interest rates.

During the quarter, the company booked a financing cost of Rs. 277 million.

The earnings per share of the company were reported at Rs. 1.73 during the quarter, as compared to Rs. 1.08 in the same period last year.

Lotte’s scrip at the bourse was closed at Rs. 19.01, down by Rs. 0.77 or 3.89 percent, with a turnover of 19.59 million shares on Friday.