In 1QFY24, Hi-Tech Lubricants Limited (HTL) incurred a net loss of PKR 56.7 million (LPS: PKR 0.41), compared to the net loss of PKR 280.32 million (LPS: PKR 2.01) in the corresponding period of the previous year.
The company’s revenue experienced a notable surge, reaching PKR 4.08 billion in 1QFY24, indicating substantial 4% YoY growth from the PKR 3.94 billion reported in the same period last year.
Cost of sales decreased by 2% YoY to PKR 3.53 billion in 1QFY24. In contrast, administrative expenses increased by 22% YoY to PKR 222.93 million while distribution expenses decreased by 4% YoY to PKR 214.07 million in 1QFY24.
The finance cost of the company increased by 37% YoY to PKR 200.99 million in 1QFY24 from PKR 146.34 million in SPLY. Gross profit recorded a substantial increase of 56% YoY, reaching PKR 547.93 million in 1QFY24.
In FY23, HTL witnessed a decrease of 16% YoY to PKR 17.62 billion compared to PKR 20.96 billion in FY22. Gross profit decreased by 35% YoY to PKR 2.43 billion during the period under review. Profit after tax clocked in at PKR 246.98 million (LPS: PKR 1.77) in FY23 as compared to a net profit of PKR 617.45 million (EPS: PKR 4.44) in FY22.
In FY23, the revenue from the lubricants, petroleum, and polymer segments was recorded at PKR 7.28 billion, PKR 8.15 billion, and PKR 183.09 million, respectively.
HTL owns and operates 36 distributors across Pakistan, with 58 in the Centre, 49 in the North, and 29 in the ants sold decreased to 90.5% (92.1% in FY22) in the local market compared to 9.5% (7.9% in FY22) of imported lubricants in FY23.
Likewise, the Company operates 13 express (maintenance) centers across Pakistan, with eight in Lahore, one in Gujranwala, one in Rawalpindi, and three in Karachi. The proportion of fuel stations in Punjab is 26% (29 stations) and 24% (9 stations) in KPK.
The Company utilizes the bottles, caps, filling, and blending plants at 17.5%, 9.6%, 6.7%, and 5.8%, capacities respectively.
In June 2023, HTL launched Polymer segment operations to produce plastic products and installed hi-tech Korean machinery at the facility. The capacity of bottles, caps, and injection molding parts was reported at 63.8%, 50.8%, and 57.8%, respectively.
Going forward, the management plans to increase the number of fuel stations by 42 by the end of 2025. HTL has received approvals from OGRA to increase fuel stations in KPK to thirty-five, of which nine stations are expected to start operations next year. Moreover, the Company plans to diversify the portfolio in the Polymer segment by adding food products.
In addition, the Company plans to advertise the recently launched App on social and print media in 3QFY24.
Important Disclosures
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