Lotte Chemical’s Profits Skyrocket 126.72 percent - Android

Lotte Chemical showed strong growth in the first half of 2019 (1HY19) as the company’s profits soared to Rs. 3.05… Read More

The post Lotte Chemical’s Profits Skyrocket 126.72% appeared first on .

Lotte Chemical showed strong growth in the first half of 2019 (1HY19) as the company’s profits soared to Rs. 3.05 billion. The company booked 126.72% higher profit as compared to Rs. 1.34 billion earned in the same period last year.

Lotte Chemical reported a 29.16% increase in net sales, growing to Rs. 33.18 billion as compared to Rs. 25.69 billion recorded in the corresponding period last year. The growth in the company’s sales was due to Rupee’s devaluation against the US dollar and high realized international PTA-PX margins (Purified Terephthalic Acid).

PTA is a base raw material for Pakistan’s textile and polyethylene terephthalate (PET) packaging industries. Paraxylene is widely used as a feedstock (or “building block”) to manufacture PTA.

Furthermore, being a petrochemical, prices of PX and PTA are linked with international oil prices.

The cost of sales of the company was reported at Rs. 28.70 billion, up by 25.60%. This took its gross profit to Rs 4.47 billion. Other expenses of the company grew to Rs. 322 million.

Distribution and selling expenses and administrative expenses were higher than the corresponding
period last year due to the overall impact of inflation.

However, other income of the company saw an increase of 96.41%. Moreover, the finance cost of the company went down to 57.50% to Rs. 117 million. The taxation expense had also increased substantially to Rs. 1.17 billion from Rs. 940 million.

The company’s earning per share were increased to Rs. 2.01 from Rs. 0.89. At the time of filing this report, Lotte’s shares at the exchange were trading at Rs. 16.70, up by Rs. 0.41 or +2.52% with a turn over of 18.50 million shares on Monday.

The post Lotte Chemical’s Profits Skyrocket 126.72% appeared first on .