Sitara Chemical quarterly profit falls 23%

October 29, 2024 (MLN): Sitara Chemical Industries Limited (PSX: SITC) posted a net profit of Rs155.33 million [EPS: Rs7.25] during the quarter ending September 2024, down 23.0% from the profit of Rs201.72m [EPS: Rs9.41] in the same period last year (SPLY).

The company's revenue remained largely unchanged at Rs7.61bn compared to SPLY. Meanwhile, gross profit fell 1.1% to Rs1.17bn in Q1 FY25.

The gross margins worsened to 15.4% as compared to 15.6% in SPLY.

During the period under review, other income expanded by 29.9% to stand at Rs73.87m in Q1 FY25 as compared to Rs56.86m in SPLY.

On the expense side, the company's administrative expenses rose 10.3% from a year ago to Rs289.62m, selling and distribution expenses fell 5.4% to Rs128.21m, and other operating expenses fell 32.5% to Rs15.19m.

The company’s finance cost soared by 17.3% and stood at Rs607.79m as compared to Rs518.08m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs49.62m against an expense paid worth Rs101.2m in the corresponding period of last year, a decrease of 51.0%.

This translates to an effective tax rate of 24.2% as compared to 33.4% in SPLY.

Amount in thousand except for EPS

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