Sitara Chemical suffers Rs70m quarterly loss as taxes surge

MG News | September 27, 2024 at 09:59 AM GMT+05:00

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September 27, 2024 (MLN): Sitara Chemical Industries Limited (PSX: SITC) reported a quarterly loss on Friday as its margins eroded and taxes surged.

The company posted a net loss of Rs69.67 million [LPS: Rs3.25] during the quarter ending June 2024 compared to a profit of Rs346.6m [EPS: Rs16.17] earned in the same period last year (SPLY).

For the full fiscal year 2023-24, the company's profit fell 41.1% from last year to Rs585.5m.

Along with the results, the company announced a final cash dividend of Rs10 per share i.e. 100%.

Going by the quarterly results, the company's revenue rose 5.9% to Rs7.78bn as compared to Rs7.35bn in SPLY.

However, the cost of sales also increased by 9.4%, worsening the gross profit by 10.5% to Rs1.17bn in Q4 FY24.

The gross margins fell to 15.0% as compared to 17.8% in SPLY.

The company's other income also fell by 14.4% to stand at Rs112.4m in Q4 FY24 as compared to Rs131.35m in SPLY.

On the expense side, the company's administrative expenses rose 5.9% from last year to Rs309.13m, while selling and distribution expenses fell 22.0% to Rs137.18m.

The company’s finance cost jumped by 34.2% and stood at Rs608.23m as compared to Rs453.25m in SPLY.

On the tax front, the company paid a substantially higher tax worth Rs379.84m against the Rs158.6m paid in the corresponding period of last year, depicting an increase of 139.5%.

This translates to an effective tax rate of 122.5% as compared to 31.4% in SPLY.

Unconsolidated (un-audited) Financial Results for quarter ended June 30, 2024 (Rupees in '000)
	Jun 24	Jun 23	% Change
Sales	7,784,875	7,354,699	5.85%
Cost of sales	(6,613,598)	(6,046,141)	9.39%
Gross Profit/ (loss)	1,171,277	1,308,557	-10.49%
Administrative Expenses	(309,127)	(291,896)	5.90%
Selling And Distribution Expenses	(137,178)	(175,791)	-21.97%
Other Gains / (Losses)	(10,115)	(965)	948.45%
Other Income	112,396	131,350	-14.43%
Other Operating Expenses	91,150	(12,813)	-
Finance Cost	(608,233)	(453,250)	34.19%
Profit/ (loss) before taxation	310,171	505,192	-38.60%
Taxation	(379,843)	(158,595)	139.50%
Net profit/ (loss) for the period	(69,672)	346,596	-
Basic earnings/ (loss) per share	(3.25)	16.17	-

Amount in thousand except for EPS

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