The board of directors of Descon Oxychem Limited (DOL) has given a green signal to the company’s management for the expansion plans of the business to the UAE market.
According to the stock filing, the board of directors of the company has decided that the company expand its operations in marketing and selling its products. This decision will be subject to the approval of the State Bank of Pakistan, the filing added.
Earlier in March, Descon Oxychem Limited (DOL) decided to enhance its footprints in the export market to mitigate price and demand risks.
DOL is involved in the manufacturing, procurement, and sale of hydrogen peroxide and allied products. Nestle, Honda, Kiya, Hyundai, Toyota, Emaar, and Sapphire are its major customers, while PSO, Clariant, Siemens, Hydro-X, and Fatima are the major suppliers.
The company enhanced its capacity to achieve economies of scale by improving control of fixed costs. This has also resulted in a decline in the consumption ratio of several chemicals in the production process.
The leading manufacturer and exporter of hydrogen-peroxide (H2O2) and allied products, witnessed a 23.57 percent increase in production as per the company’s financial-year 2022 (FY22) results.
Due to the improved production, increased exports, and surge in H2O2 prices in the domestic and international market, DOL witnessed a 52 percent year-on-year (YoY) increase in revenue (Rs. 4.2 billion) and profit after tax of Rs. 471 million, a 69 percent YoY growth.
At the time of filing, Descon’s scrip at the bourse was Rs. 21.41, up 6.46 percent or Rs. 1.30 on Wednesday.
