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LOTCHEM: Robust uptick in income continues

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April 22, 2021 (MLN): Lotte Chemical Pakistan Limited (LOTCHEM) has disclosed 1QCY21 results today, wherein the company posted earnings of Rs1.6bn (EPS: Rs1.1/sh), which was 28.2x higher than the profits of Rs57.9mn (EPS Re0.04) in 1QCY20.

The impressive growth in the company’s earnings attributed to a surge in PTA-PX margin and upbeat demand from the downstream PSF segment.

During the quarter, net sales went up by25% YoY to Rs14.7bn largely on the back of higher international PTA prices and production. As a result, the company witnessed gross profit margins of 15.4% compared with loss during 1QCY20. The rise in gross margins is witnessed due to a 44% YoY rise in PTA margins, 1.5% YoY PKR depreciation, GIDC suspension, and inventory gains.

On the expense side, Distribution and Administration cost inclined by 16% and 8.5% respectively. While other expenses surged by a whopping 38.3x YoY.

Among other line items, the Other income has declined by 19% YoY on the back of lower deposit rates.

Moreover, the company booked a finance income of Rs98mn due to exchange gain on the back of PKR appreciation during the quarter under review.

On the tax front, the company incurred an effective tax rate of 29% compared to 31% in 1QCY20.

 

Profit and Loss Account for the quarter ended March 31, 2021 ('000 Rupees)

 

Mar-21

Mar-20

% Change

Revenue

                     14,671,880

                     11,712,002

25.27%

Cost of Sales

                  (12,408,169)

                  (11,825,089)

4.93%

Gross Profit

                       2,263,711

                        (113,087)

-2101.74%

Distribution and Selling Expenses

                           (28,929)

                           (24,861)

16.36%

Administrative Expenses

                        (115,090)

                        (106,044)

8.53%

Other Expenses

                        (199,928)

                             (5,211)

3736.65%

Other Income

                           277,704

                           343,375

-19.13%

Finance Cost/(income)

                             98,015

                           (10,585)

Profit/(loss) before Taxation

                       2,295,483

                             83,587

2646.22%

Taxation

                        (656,482)

                           (25,593)

2465.08%

Profit after Taxation

                       1,639,001

                             57,994

2726.16%

Earnings per share – Basic and Diluted (Rs.)

                                  1.08

                                  0.04

2600.00%

 

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Posted on: 2021-04-22T17:43:00+05:00

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