Lahore: Ittehad Chemicals Limited has reported an increase in net sales revenue for the first nine months of the 2025 financial year, despite a decrease in net profit after tax. The company posted net sales revenue of Rupees 20,340 million, marking a 14% increase compared to Rupees 17,863 million during the same period in 2024. The cost of sales rose to Rupees 16,603 million from Rupees 14,277 million, resulting in a gross profit of Rupees 3,737 million, up from Rupees 3,586 million last year. However, the gross profit margin declined to 18% from 20%, attributed to increased energy costs.
The company's net profit after tax stood at Rupees 928 million, down from Rupees 977 million in 2024, reflecting a decrease in earnings per share from Rupees 9.77 to Rupees 9.28. Despite the decline in profit, Ittehad Chemicals is concentrating on technological advancements to enhance operational efficiencies. The company's board has authorized an increase in long-term strategic investment from Rupees 5.00 billion to Rupees 8.00 billion in its subsidiary, ICL Power (Pvt.) Limited, to support the expansion of its Biomass Power Plant.
According to information available from the Pakistan Stock Exchange (PSX), the development work on this project is progressing, with the company injecting equity and loans into its subsidiary as needed. Additionally, the board has approved the establishment of a new Caustic Soda Flaker Plant, with a letter of credit established for the project. The plant is expected to be operational by the end of the fiscal year 2025-26, potentially boosting profitability in line with management's commitment to enhancing shareholder value.
Meanwhile, M/s Ittehad Salt Processing (Pvt.) Limited, another wholly-owned subsidiary, is working towards acquiring a Mining Lease, despite delays caused by government policies. Amid ongoing economic challenges, Ittehad Chemicals continues to prioritize operational efficiency, cost control, and strategic growth by introducing value-added products, exploring new markets, and modernizing its existing facilities. The management remains optimistic about the future while monitoring market dynamics and macroeconomic developments.
The board expressed gratitude towards members, customers, suppliers, banks, and government departments for their support and acknowledged the dedication and hard work of the company's employees.