Karachi: Sitara Chemical Industries Limited reported a steady financial performance for the first quarter ending September 30, 2024, with modest growth in net sales and gross profit, despite facing higher energy costs and depreciation charges.

During the quarter, the company achieved net sales of Rs. 7.61 billion, slightly down from Rs. 7.67 billion in the same period last year. Gross profit also saw a slight decrease to Rs. 1.17 billion from Rs. 1.19 billion, according to information available from the Pakistan Stock Exchange (PSX). The net profit after tax stood firm at Rs. 155 million, compared to Rs. 202 million a year earlier, translating into earnings per share of Rs. 7.25, down from Rs. 9.41.

The decrease in net profit was primarily due to incremental depreciation charges and an increase in energy costs, which rose in response to average energy cost per unit and the company's expansion in its textile segment. This included the installation of an MI 0W solar system in its textile division, which allowed the company to manage energy costs effectively.

Additionally, the company is preparing for future growth, with substantial deliveries of equipment for a new 50 MW coal fired power plant underway, indicating ongoing strategic investments to bolster operational capabilities.

Despite the challenges posed by inflation and potential geopolitical instabilities, such as fluctuations in the Pakistani rupee against the US dollar, Sitara Chemical remains optimistic about its ability to navigate the economic landscape.

Sitara Chemical acknowledges the continued support from its stakeholders, which remains crucial as the company looks forward to overcoming obstacles and maintaining steady progress in its operations.