Noventra Limited Posts Strong Profit Growth, Earnings Rise to Rs4.85 Billion
Noventra Limited, formerly known as Lotte Chemical Pakistan Limited, has reported a significant increase in profitability for the nine-month period ended September 30, 2026, reflecting a substantial improvement in its financial performance compared with the corresponding period last year.
According to the company’s unaudited financial statements submitted to the Pakistan Stock Exchange (PSX) on October 15, 2026, Noventra recorded a profit after taxation of Rs4.85 billion for the nine months, compared with Rs835.87 million in the same period of 2025.
The results highlight a notable improvement in the company’s earnings, supported by higher gross profit, stronger operating performance and a substantial increase in other income.
Revenue and Gross Profit Improve
Noventra reported net revenue of approximately Rs63.18 billion for the nine-month period, compared with Rs60.54 billion in the corresponding period last year. This represents an increase of around 4.4% year-on-year.
The company’s cost of sales declined to approximately Rs57.05 billion from Rs58.19 billion, helping gross profit rise to Rs6.12 billion from Rs2.35 billion in the same period of 2025.
Operating profit also increased considerably, reaching Rs4.66 billion compared with Rs1.37 billion a year earlier. The improvement indicates stronger operating profitability during the reporting period.
Significant Increase in Net Earnings
The company’s profit before taxation reached Rs7.91 billion for the nine months ended September 2026, compared with Rs1.37 billion in the corresponding period of the previous year.
Profit after taxation climbed to Rs4.85 billion from Rs835.87 million, while basic and diluted earnings per share increased to Rs3.20 from Rs0.55.
Other income rose significantly to Rs4.09 billion from Rs462.60 million in the corresponding period last year. However, finance costs also increased to Rs839.76 million from Rs457.53 million, while taxation rose to approximately Rs3.06 billion.
These figures demonstrate the scale of the improvement in the company’s reported earnings, although the contribution of other income is also an important factor in assessing the sustainability of its performance.
Third-Quarter Performance
For the quarter ended September 30, 2026, Noventra recorded revenue of approximately Rs18.47 billion, compared with Rs20.37 billion in the same quarter of 2025.
Gross profit for the quarter stood at Rs495.77 million, down from Rs570.37 million a year earlier. Operating profit declined to Rs138.09 million from Rs206.44 million.
Despite lower quarterly revenue and operating profit, profit after taxation increased to Rs539.10 million from Rs94.09 million in the corresponding quarter last year. Earnings per share also rose to Rs0.36 from Rs0.06.
The quarterly figures suggest that higher other income played a significant role in supporting the company’s bottom-line performance.
Dividend and Corporate Announcements
In its letter to the Pakistan Stock Exchange, the company’s board of directors stated that it had recommended no cash dividend, bonus shares, right shares or other entitlement for the period under review.
The financial statements also show that an interim dividend of Rs1.50 per share for the year ending December 31, 2026, had been recorded in the statement of changes in equity. The latest board communication, however, did not recommend an additional entitlement alongside the reported results.
Cash Flow and Financial Position
Noventra generated net cash of approximately Rs607.12 million from operating activities during the nine months ended September 2026, compared with net cash used in operating activities of Rs5.40 billion in the corresponding period last year.
The company reported capital expenditure of approximately Rs1.44 billion during the period. Financing activities resulted in a net cash outflow of Rs5.25 billion, mainly reflecting dividend payments and other financing-related transactions.
As of September 30, 2026, total assets stood at approximately Rs35.88 billion, compared with Rs47.80 billion at December 31, 2025. Total equity was reported at Rs18.54 billion, while total liabilities stood at Rs17.34 billion.
The balance sheet also showed long-term borrowing of approximately Rs4.03 billion and a current portion of long-term borrowing of Rs1.67 billion.
Outlook for Investors
Noventra Limited’s nine-month results reflect a substantial year-on-year increase in reported profitability, with earnings per share rising significantly compared with the previous year.
Nevertheless, investors may wish to examine the composition of other income, the decline in third-quarter revenue, borrowing levels and future operating margins when evaluating the company’s financial outlook.
The company’s future performance will depend on its ability to sustain operating profitability, manage financing costs and maintain healthy cash flows in the coming quarters.
Overall, Noventra’s latest financial results show a strong improvement in nine-month earnings, while the quarterly figures and balance sheet highlight areas that investors may continue to monitor.
