Lotte Chemical profit plummets 75% in Q3

October 25, 2024 (MLN): Lotte Chemical Pakistan Limited's (PSX: LOTCHEM)profit after tax plunged 75.1% to Rs494.94 million [EPS: Rs0.33] during the thrid quarter of 2024, compared to a profit of Rs1.99 billion [EPS: Rs1.31] in the same period last year (SPLY).

Its shares fell over 5% during intraday trade on Friday.

The company's top line increased 4.3% to Rs24.6bn as compared to Rs23.59bn in SPLY.

However, the cost of sales also rose by 16.7%, which worsened the gross profit by 69.4% to Rs1.05bn in Q3 2024.

The gross margins fell to 4.2% as compared to 14.5% in SPLY.

Moreover, other income contracted by 60.8% to stand at Rs274.7m in Q3 2024 as compared to Rs700.47m in SPLY.

On the expense side, the company's administrative expenses rose 22.1% from a year ago  to Rs190.64m, selling and distribution expenses rose 43.8% to Rs66.53m, while other operating expenses fell 75.7% to Rs56.74m.

The company’s finance cost deflated by 60.0% and stood at Rs186.8m as compared to Rs466.98m in SPLY.

On the tax front, the company paid a lower tax worth Rs324.07m against the Rs1.23bn paid in the corresponding period of last year, depicting a fall of 73.6%.

This translates to an effective tax rate of 39.6% as compared to 38.2% in SPLY.

Amount in thousand except for EPS

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