LOTCHEM earnings expected to clock in at 0.42 per share for 1QCY19

LOTCHEM is scheduled to announce its financial results for 1QCY19 on 19th Apr’19. Analysts project the company to post a profitability of PKR 643mn (EPS: PKR 0.42), up by 81% YoY in 1QCY19 compared to PKR 355mn (EPS: PKR 0.23) in 1QCY18.

Gross margins of the company are expected to decline by 142 bps YoY to 7.6%. Decline in gross margins is expected due to 8% YoY reduction in international PTA margins (average USD 130/ton).

Net sales during the quarter are expected to increase by 22% YoY owing to 9% YoY rise in PTA prices along with PKR depreciation.

On QoQ basis, earnings are expected to decrease by 37% owing to 23% QoQ decline in international PTA margins.