Karachi November 1 2021: During the first quarter, the Ittehad Chemical Limited (ICL) posted net sales revenue of Rupees 3,249 Million denoting an increase of 36 percent over corresponding period of last year (2020: Rupees 2,395 Million). The cost of sales stood at Rupees 2,998 Million (2020: Rupees 1,841 Million) bringing gross profit to Rupees 251 Million (2020: Rupees 554 Million).
The gross profit margin reduced to 8 percent from 23 percent vis-à-vis corresponding period of last year mainly due to increased energy cost during the period under review.
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The bottom line showed loss after tax of Rupees 9 Million (2020: Profit of Rupees 170 Million) which resulted in loss per share of Rupees 0.10 (2020: Earnings per share Rupees 2.01).
During the last financial year 2021, the Company posted net sales revenue of Rupees 11,124 Million with an increase of 26% (2020: Rupees 8,857 Million). The cost of sales stood at Rupees 9,238 Million (2020: Rupees 7,675 Million) bringing gross profit to Rupees 1,886 Million (2020: Rupees 1,182 Million). The annual gross profit margin improved to 17% from 13% vis à vis corresponding period of last year. After taking fair value gain Rupees 113 Million on investment property, the bottom line showed a net profit after tax amounting to Rupees 657 Million (2020: Rupees 61 Million) which yielded earning(s) per share Rupees 7.75 per share (2020: Rupees 0.72 per share).
The planned expansion of LABSA / SLES Plant would come on stream during the ongoing Financial Year as conveyed through earlier reports. Moreover, the work on up gradation of power plant engines to increase capacity and to improve fuel efficiency is also well under way.
The wholly owned subsidiary i.e. Ittehad Salt Processing (Private) Limited is in the process of acquiring Mining Lease from the concerned Government Department. The Management is optimistic about future growth and healthy returns after obtaining the Mining Lease and is consistently exploring new markets with the ultimate objective to maximize shareholders' wealth in the long run.
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Ittehad Chemical Management believes that COVID-19 still continues to affect businesses and the society at large. The oil prices are showing a rising trend in the international market which has increased/may further increase the energy cost of the chemical industry. The future prospects of the industry will therefore depend on the energy policies of the Government which may have negative or positive effect on the production cost. The Management of your company is keenly observing the prevailing situation and would take appropriate measures to address the emerging challenges.
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