Karachi: Descon Oxychem Limited has released its financial performance for the quarter ending September 30, 2024. The company reported a slight decline in profit after tax but showcased an improvement in operational efficiency and market expansion efforts.
According to information available from the Pakistan Stock Exchange (PSX), during this quarter, Descon Oxychem faced market challenges, including heightened import activities which impacted its pricing strategy. Despite these obstacles, the company successfully improved its average selling price by focusing on high-margin customer segments, particularly in the North region of Pakistan. The cost of sales saw an uptick due to increased energy expenses linked to global inflationary pressures, yet the company managed to strengthen its market positioning both locally and internationally in the hydrogen peroxide (H2O2) sector.
Financially, the quarter concluded with a total local sales volume of 9,771 metric tonnes and export sales of 779 metric tonnes, slightly down from the previous year's figures of 9,782 and 813 metric tonnes, respectively. The sales value stood at PKR 1.51 billion, a modest increase from PKR 1.50 billion in 2023. Although gross profit increased to PKR 396.99 million from PKR 386.57 million, the profit from operations and after-tax figures slightly declined, with the latter closing at PKR 189.81 million compared to PKR 198.85 million the previous year.
The company's future outlook remains focused on maintaining margins amidst significant cost increases due to raw material price hikes and ongoing inflation. Descon Oxychem is actively pursuing new market segments and striving to enhance operational efficiencies to position itself as the lowest cost H2O2 producer in the region. The management's strategic initiatives include penetrating new markets, optimizing manufacturing processes, and enhancing safety and product quality standards to fortify its market leadership.
Descon Oxychem's Board expressed gratitude towards stakeholders for their continued support and contributions, reaffirming their commitment to sustaining growth and profitability in challenging economic conditions.