ICL’s Q2 profit plunges by 66% YoY

February 21, 2024 (MLN): Ittehad Chemical Limited (PSX: ICL) earned a profit after tax of Rs207.74 million [EPS: Rs2.08] in the second quarter of fiscal year 2024, a decline from the profit of Rs617.88m [EPS: Rs6.18] recorded in the same period last year (SPLY).

Going by the results, the company's top line shrank 13.48% YoY to Rs5.54bn as compared to Rs6.41bn in SPLY.

The cost of sales also fell 4.79% YoY but was lesser than proportionate to sales decline, which worsened the gross profit by 39.19% YoY to Rs984.37m in 2QFY24.

The gross margins plummeted to 17.76% as compared to 25.26% in SPLY.

However, during the review period, other income surged by 3.83x YoY to stand at Rs79.71m in 2QFY24 as compared to Rs20.79m in SPLY.

On the expense side, the company observed a decrease in selling and distribution expenses by 26.96% YoY and other expenses by 67.66% YoY to clock in at Rs326.6m and Rs30.24m respectively during the review period.

Meanwhile, the company’s finance costs went up by 20.97% YoY and stood at Rs224.54m as compared to Rs185.62m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs186.72m against the Rs229.92m paid in the corresponding period of last year, depicting a fall of 18.79% YoY.

Amount in thousand except for EPS

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