Sitara Chemical shines with robust 125% profit growth

October 29, 2025 (MLN): Sitara Chemical Industries Limited (PSX: SITC), a leading manufacturer of soda ash and other chemical products in Pakistan, reported a profit after tax of Rs349.0 million for the quarter ended September 30, 2025, showing a remarkable surge of 124.72% compared to Rs155.3m in the same period last year.

Earnings per share (EPS) jumped 124.69% to Rs16.29, up from Rs7.25 in the corresponding quarter of 2024.

The company's revenue from contracts with customers increased 4.09% year-on-year to Rs7.92bn, compared to Rs7.61bn last year, driven by improved sales volumes and better price realization.

Cost of sales rose marginally by 1.63% to Rs6.54bn, resulting in a strong expansion in gross profit, which surged 17.60% to Rs1.38bn from Rs1.17bn in the prior-year quarter. Consequently, gross margin improved to 17.4% from 15.4% a year earlier.

Distribution costs increased significantly by 46.12% to Rs187.3m, while administrative expenses rose 4.66% to Rs303.1m. Other expenses jumped 124.93% to Rs34.2m during the quarter.

However, finance costs declined substantially by 42.63% to Rs348.7m from Rs607.8m, showing reduced borrowing costs and improved financial management. Total expenses (subtotal) decreased 16.09% to Rs873.3m.

The company's profit from operations stood at Rs504.9m, up a remarkable 285.16% from Rs131.1m last year, demonstrating strong operational efficiency.

Other income remained relatively stable, declining slightly by 5.20% to Rs70.0m.

Profit before income tax and final tax surged 180.51% to Rs574.9m. Final tax dropped 46.30% to Rs2.6m, while profit before taxation increased 185.98% to Rs572.3m.

However, provision for taxation rose sharply by 398.42% to Rs223.3m from Rs44.8m in the corresponding quarter, leading to a profit after taxation of Rs349.0m.

The quarterly results indicate that Sitara Chemical Industries delivered exceptional performance driven by improved gross margins, significantly lower finance costs, and strong operational leverage, more than offsetting higher distribution expenses and elevated taxation.

The company continues to play a vital role in Pakistan's chemical manufacturing sector as a key producer of soda ash, sodium silicate, and related products, serving domestic and international markets with quality chemical solutions.

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