Lotte Chemical Pakistan Ltd Posts 60% Profit Growth in Q1

Lotte Chemical Pakistan Ltd Posts 60% Profit Growth in Q1 in 2022

Lotte Chemical Pakistan Limited (LOTCHEM) reported a profit after tax of Rs. 2.615 billion for the fiscal quarter ending March 31, 2022.

According to the company’s financial results, profit after tax increased by 60% year on year (YoY) to Rs. 1.639 billion in the same period last year. In addition to the results, the company announced earnings per share (EPS) of Rs. 1.73 for the period under review, which was higher than market expectations.

Due to higher PTA prices, the company’s net sales increased by 39% year on year to Rs. 20.33 billion in 1QCY22 from Rs. 14.67 billion in the same period last year. Net sales increased by 7% from one quarter to the next.

The company’s gross margins increased by 4.3 percent year on year to 19.7 percent, up from 15.4 percent during the review period. According to industry participants, the increase was due to higher realized PTA margins.

On a broader scale, gross profits increased by 77% to Rs. 4.01 billion from Rs. 2.26 billion in the previous quarter. Similarly, the company’s other income increased by 35% to Rs. Three hundred seventy-six million due to increased short-term investments and higher interest rates.

The company incurred a financing cost of Rs. Two hundred seventy-seven million during the quarter.

The company’s earnings per share were reported at Rs. 1.73 during the quarter, compared to Rs. 1.08 in the same period last year.

On Friday, Lotte’s stock closed at Rs. 19.01, down Rs. 0.77 or 3.89 percent, with a turnover of 19.59 million shares.

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