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Pakistan Chemical: 4QCY24 Preview: Earnings to remain subdued - By Insight Research

  • By: Insight Securities (Private) Limited

  • - Published: Tuesday, 04 February 2025
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<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">LOTCHEM is expected to post a PAT of PKR629mn (EPS: PKR0.42) in 4QCY24 vs. PKR238mn (EPS: PKR0.16) in SPLY, up by ~164% primarily due to higher volumetric sales. While on QoQ, same is expected to go up by 27%, amid better core delta. To note, International PTA prices plunged by ~14%/10% YoY/ QoQ to clock in at ~US$669/ton. Similarly, PX prices witnessed a decrease of ~17%/11% YoY/QoQ to clock in at US$847/ton, resulting in an increase of ~9% QoQ in PTA-PX spread. Company&rsquo;s topline is expected to increase by 21% YoY to clock in at PKR23.5bn in 4QCY24, amid higher volumetric sales. Whereas, same is expected to decline by ~4% QoQ due to lower volumetric sales. Gross margins of the company are estimated to clock in at 5.6% in 4QCY24, witn...

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