LOTCHEM: Strong PTA-PX margins elevate net income
MG News | February 17, 2022 at 01:45 PM GMT+05:00
February 17, 2022 (MLN): Lotte Chemical Pakistan Limited (LOTCHEM) reported a net profit to Rs4.64billion (EPS: Rs3.07) in the calendar year 2021, up by 2.18 times YoY when compared to a net profit of Rs2.13bn in CY20, backed by higher gross margins amid PTA-PX margins.
According to a financial statement sent to Exchange, the revenue from operations rose by nearly 72.4% YoY to Rs67bn 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 Rs7.58bn, showing nearly a nearly 3-fold increase YoY in the said period. The company’s gross margins improved by 5ppt to 11% in CY21.
On the cost front, LOTCHEM’s distribution and selling expenses and other operating expenses surged by 11.6% YoY and 2.06x YoY to Rs119mn and Rs487mn, respectively in CY21.
Notably, the finance cost of the company witnessed a colossal increase of 6.5 times YoY to Rs974mn mainly due to exchange loss on dollar base lease liabilities amid PKR deprecation, limiting the bottom-line growth of the company.
On the tax front, in CY21, the company paid taxes worth Rs1.85bn, up by 2.12x YoY.
|
Proft and Loss Account for the year ended December 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Revenue from contract with customers-net |
67,164,965 |
38,964,851 |
72.37% |
|
Cost of Sales |
(59,583,590) |
(36,322,627) |
64.04% |
|
Gross Profit |
7,581,375 |
2,642,224 |
186.93% |
|
Distribution and Selling Expenses |
(119,677) |
(107,275) |
11.56% |
|
Administrative Expenses |
(490,989) |
(572,159) |
-14.19% |
|
Other operating expenses |
(487,502) |
(235,526) |
106.98% |
|
Other Income |
989,844 |
1,422,069 |
-30.39% |
|
Finance Costs |
(974,044) |
(150,248) |
548.29% |
|
Profit before Taxation |
6,499,007 |
2,999,085 |
116.70% |
|
Taxation |
(1,856,097) |
(873,980) |
112.37% |
|
Profit after Taxation |
4,642,910 |
2,125,105 |
118.48% |
|
Earnings per share - Basic and Diluted (Rs.) |
3.07 |
1.40 |
119.29% |
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