LOTCHEM profit soars over 3-folds to Rs3.23bn in 9MCY21

October 15, 2021 (MLN): Lotte Chemical Pakistan Limited (LOTCHEM), the only manufacturer and supplier of Purified Terephthalic Acid (PTA) for PET markets in Pakistan, on Friday reported 3.7x YoY jump in net profit to Rs3.23billion (EPS: Rs2.13) in the nine months ended on September 30, 2021, backed by higher gross margins amid PTA-PX margins.

The company, which follows the calendar year, had recorded a net profit of Rs867million (Rs0.57) in the corresponding period a year ago, said in a financial statement sent to Exchange.

During 9MCY21, the revenue from operations rose by nearly 79% YoY to Rs48.22bn due to higher volume sold due to robust demand from the textile sectors coupled with higher PTA-PX margins, resulting in a gross profit of Rs5.32bn, up by 4.3x YoY in the said period.

Meanwhile, LOTCHEM’s administrative expenses and other expenses surged by 10.4% YoY and 78.7% YoY to Rs351mn and Rs436mn, respectively in the 9MCY21.

Notably, the finance cost of the company witnessed a colossal increase of 4.5 times YoY to Rs778mn mainly due to exchange loss on dollar base lease liabilities amid PKR deprecation, a research note by Darson Securities highlighted.

On the tax front, in 9MCY21, the company paid taxes worth Rs1.30bn, up by 3.08x YoY.

Alongside financial results, the company has recommended an interim cash dividend for the 9MCY21 at Rs1.50 per share i.e.,15%.

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