β‘ Flash Summary
Ghani Chemical Industries Limited (GCIL) presented its corporate briefing for FY 2025, highlighting strong performance despite macroeconomic challenges. Net sales increased year-over-year, driven by healthcare gases, and gross profit margin improved through operational efficiencies. The company’s EPS rose significantly from Rs. 1.58 in FY24 to Rs. 3.92 in FY25. GCIL has also commissioned its fifth and largest ASU plant at Hattar SEZ, expecting it to be a cost-efficient unit with tax-exempt profits.
π Key Takeaways
- π GCIL commissioned its 5th and largest ASU plant at Hattar SEZ in April 2025 with a capacity of 275 TPD.
- π° Sales – Gross increased from PKR 6,395 million in FY24 to PKR 8,739 million in FY25.
- π Sales – Net rose from PKR 5,437 million in FY24 to PKR 7,435 million in FY25.
- β Gross Profit surged from PKR 1,613 million in FY24 to PKR 3,412 million in FY25.
- π Profit before tax more than doubled from PKR 1,284 million in FY24 to PKR 2,639 million in FY25.
- π Profit after tax witnessed substantial growth from PKR 786 million in FY24 to PKR 2,016 million in FY25.
- πΈ Earning per share (EPS) increased significantly from PKR 1.58 in FY24 to PKR 3.92 in FY25.
- πͺ EBITDA improved from PKR 1,865 million in FY24 to PKR 3,313 million in FY25.
- π± Total Assets remained robust at PKR 16.2 billion, despite the demerger of the calcium carbide project.
- π¦ Shareholder Equity stood at PKR 9.2 billion, driven by retained earnings.
- π€ Long-term supply agreements with Attock Refinery and Engro Polymer & Chemicals contribute to stable revenues.
- π’ Supplies gas for ship cuttings at Gadani Beach, one of the world’s busiest shipbreaking yards.
- βοΈ Medical gas sales to hospitals represent a consistent and high-revenue stream.
- π Country-wide distribution network enhances geographical reach.
- π¨ Expansion into LPG sector with a 450 MT storage & filling plant.
π― Investment Thesis
GCIL is a BUY. The company has demonstrated strong financial performance in FY25 with substantial growth in revenue, profitability, and EPS. The commissioning of the new plant at Hattar SEZ is expected to further boost its growth prospects. The company’s focus on high-growth sectors such as healthcare and industrial gases positions it well for the future. Price Target: PKR 60.00. Time Horizon: Medium Term (12-18 months).
Disclaimer: AI-generated analysis. Not financial advice.