ICI Pakistan posts 65pc decline in profits

KARACHI: ICI Pakistan Limited has announced a net profit of Rs279.4 million for the quarter ended December 31, 2019, which is 65 percent lower than the profit of Rs804.19 million posted in the same period last year.

The earnings per share (EPS) for the quarter under review clocked in at Rs3.0 as against Rs8.67 in the same period last year.

The ICI Pakistan Board has approved interim cash dividend in respect of the financial year ending June 30, 2019, at the rate of 45percent i.e. Rs4.50 per share of Rs. 10 each to be payable to the members. [the_ad id=”31605″] The above entitlement will be paid to the shareholders whose names will appear in the Register of Members on Friday, February 15, 2019.

On a consolidated basis, including the results of the company’s subsidiaries, ICI Pakistan PowerGen Limited, Cirin Pharmaceuticals (Private) Limited and NutriCo Morinaga (Private) Limited, net turnover for the six months period under review at Rs28.408 billion is 21 percent higher than the same period last year (SPLY), with the Polyester, Soda Ash and Chemicals & Agri Sciences Businesses providing the impetus, with growths of 30 percent, 42 percent and 8 percent, respectively.

Operating result for the six months at Rs 1.949 billion is 9 percent lower as compared to the SPLY on account of lower operating performances in the Polyester and Life Sciences Businesses, which was partially offset by improved performance in the Soda Ash and Chemicals & Agri Sciences Businesses by 21 percent and 1217 percent, respectively.

The improved performance achieved by the Soda Ash Business was mainly driven by higher sales volumes attributable to the successful commissioning of 75,000 tons per annum expansion plant. The Chemicals & Agri Sciences Business showed improved performance on the back of strong operating result delivered by Agro Chemicals segment under Agri Division. Lower operating result in the Polyester Business is attributable to net realizable value adjustments following decline in prices of polyester staple fibre (PSF) on higher carrying inventory required to cover the shutdown period.

The operating result of Life Sciences Business was lower as sales were adversely affected by ban on import and marketing of recombinant bovine somatotropin (rbST) injections, along with higher costs due to a surge in international raw material prices and rupee devaluation.

Profit after tax (PAT) for the six months period ended December 31, 2018 at Rs 825 million is 49 percent lower than the SPLY. This was due to above mentioned decrease in the operating results, higher finance cost by Rs 490 million owing to increased interest rates and higher debt due to shift in company’s payment policy from Usance LC to Sight LC to minimize foreign exchange losses and higher effective tax rate due to non-availability of tax credits as were available during SPLY on the Light Soda Ash expansion project.

Earnings per share (EPS) for the six months period under review at Rs 8.83 is 50 percent lower as compared to the SPLY. On an unconsolidated basis, PAT for the six months period under review at Rs 900 million and EPS at RS 9.75 are 38 percent lower than the SPLY.

The ICI Pakistan Board has authorized the company management to proceed with Phase 2 of the 150,000 tons per annum (TPA) Light Ash expansion of the Soda Ash Plant being expansion of 75,000 TPA. The company has already successfully commissioned Phase 1 of the Project (75,000 TPA in February 2018). This is in addition to a Dense Ash expansion of 70,000 MT per annum, which will cater to the growing needs of the market.

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