April 24, 2019 (MLN): ICI Pakistan PowerGen Limited, along with its subsidiaries Cirin Pharmaceuticals (Private) Limited and NutriCo Morinaga (Private) Limited, has reported net turnover for the nine months ended March 31, 2019, at Rs. 43,937 million.
This translates into a 20% increase as compared to the same period last year (SPLY), with the Polyester, Soda Ash and Chemicals & Agri Sciences Businesses posting topline growth of 31%, 34% and 11%, respectively.
Operating result were 2% lower in comparison to the SPLY, due to lower performance in the Polyester and Life Sciences Businesses by 148% and 74%, respectively. This was, however, partially offset by improved performance in the Soda Ash and Chemicals & Agri Sciences Businesses by 29% and 257%, respectively.
Lower operating result in the Polyester Business is attributable to net realisable value adjustments following a decline in prices of polyester staple fibre (PSF) on higher carrying inventory required to cover the shutdown period in the second quarter, which was partially offset by contributions from new export markets in the third quarter.
The operating result of Life Sciences Business was lower as sales were adversely affected by the ban on import and marketing of recombinant bovine somatotropin (rbST) injections, along with higher costs due to a surge in imported raw material prices and rupee devaluation.
The improved performance achieved by the Soda Ash Business was mainly due to higher sales volumes attributable to the commissioning and commercial operation of the 75,000 tons per annum plant expansion.
The Chemicals & Agri Sciences Business showed improved performance on the back of strong operating results delivered by the Agro Chemicals segment, coupled with higher sales of sunflower seeds as a result of the subsidy announced by the government.
Profit after tax (PAT) for the nine-month period under review at Rs. 1,773 million is 35% lower than the SPLY. This was due to higher finance costs by Rs. 664 million owing to increased interest rates and higher debt due to a shift in the Company's payment policy from Usance LC to Sight LC.
Additionally, lower share of profit from associate and a higher effective tax rate due to non-availability of tax credits, which were available during the SPLY on the Light Soda Ash expansion project, negatively impacted the profits.
Earnings per share (EPS) for the nine months period under review, was reported at Rs. 19.10, i.e. 35% lower as compared to the SPLY.
On an unconsolidated basis, PAT for the nine months period under review was stated at Rs. 1,655 million (EPS: Rs. 17.91), depicting a decline of 33% as compared to SPLY.
|
Profit and loss account for the nine month ended March 31 2019 (Rupees'000) |
|||
|---|---|---|---|
|
Mar-19 |
Mar-18 |
% Change |
|
|
Net turnover |
43,936,817 |
36,745,498 |
19.57% |
|
Cost of sales |
-36,848,782 |
-29,806,050 |
23.63% |
|
Gross profit |
7,088,035 |
6,939,448 |
2.14% |
|
Selling and distribution expenses |
-2,477,266 |
-2,206,348 |
12.28% |
|
Administration and general expenses |
-1,087,940 |
-1,151,257 |
-5.50% |
|
Operating result |
3,522,829 |
3,581,843 |
-1.65% |
|
Finance costs |
-1,059,182 |
-395,236 |
167.99% |
|
Exchange loss |
-235,737 |
-336,459 |
-29.94% |
|
Workers' profit participation fund |
-121,881 |
-157,087 |
-22.41% |
|
Workers' welfare fund |
-43,225 |
-60,889 |
-29.01% |
|
Other charges |
-32,757 |
-35,542 |
-7.84% |
|
Other income |
88,970 |
100,109 |
-11.13% |
|
Share of profit from associate |
324,117 |
458,539 |
-29.32% |
|
Profit before taxation |
2,443,134 |
3,155,278 |
-22.57% |
|
Taxation |
-670,016 |
-410,212 |
63.33% |
|
Profit after taxation |
1,773,118 |
2,745,066 |
-35.41% |
|
Basic and diluted earnings per share |
19.10 |
29.60 |
-35.47% |
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