Earnings Preview: LOTCHEM’s profits for 1QCY19 expected to augment by 81%

April 18, 2019 (MLN): Lotte Chemical Pakistan Limited (LOTCHEM) is scheduled to announce its financial results for 1QCY19 on 19th April 2019. In keeping with the projections put forth by Arif Habib Limited, the company is likely to post Profits after Tax of Rs. 643 million (EPS: Rs. 0.42), up by 81% YoY in 1QCY19 compared to Rs. 355 million (EPS: Rs. 0.23) in 1QCY18.

The gross sales of the company during the period under review are expected to clock-in at Rs. 15.1 billion, up by 22% YoY, despite expected drop in volumes by 10% owing to higher PTA rates (9% improvement YoY) as well as weaker PKR parity against the USD (1-year devaluation of 22%), a research report by BMA Capital stated.

However, gross margins of the company are likely to decline by 142 bps YoY to 7.6%, due to 8% YoY reduction in international PTA margins (average USD 130/ton).

On QoQ basis, earnings are expected to decrease by 37% owing to 23% QoQ decline in international PTA margins.

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Posted on: 2019-04-18T12:01:00+05:00

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