ICL – a look at its future outlook

ICL - Fundamental Analysis
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ICL – a look at its future outlook

Overview of 9MFY24 Performance

Ittehad Chemicals Limited (ICL) reported net sales of approximately PKR 17.9 billion for the first nine months of FY24, reflecting a 3% decrease compared to the same period last year. Despite the decline in sales, the company’s cost reduction measures maintained a stable gross margin of 20% year-on-year. However, increased utility rates, higher taxation, and rising finance costs resulted in a 26% decrease in net profit, amounting to around PKR 977 million.

Product Portfolio

ICL has a diverse range of chemical products, including:

  • Caustic Soda Liquid (31% and 50% concentration)
  • Caustic Soda Flakes
  • Hydrochloric Acid
  • Sodium Hypo
  • Liquid Chlorine (used in 60% of all commercial chemistry and 95% of all yield-enhancing or agrochemical chemistry)
  • Calcium Chloride
  • LABSA (Linear Alkyl Benzene Sulphonic Acid)
  • SLES (Sodium Lauryl Ether Sulfate)

Plant Operations

The company operates four major plants with the following annual capacities:

  • Caustic Soda Liquid: 150,000 MT
  • LABSA/SLES: 70,000 MT
  • Caustic Soda Flakes: 10,000 MT
  • Calcium Chloride: 30,000 MT

Revenue Streams

In FY23, the majority of ICL’s revenue came from Asia, totaling around PKR 21.1 billion. Additional sales were reported from other regions:

  • Middle East: ~PKR 2.1 billion
  • Africa: ~PKR 971 million
  • Europe: ~PKR 17 million

Power Consumption

ICL’s total power requirement is 30 MW, with a power mix of 25% sourced from SNGPL (Sui Northern Gas Pipelines Limited) and 75% from RLNG (Regasified Liquefied Natural Gas).

Import and Export

The import price of LABSA stands at approximately USD 1600 per MT or around PKR 385,000 per MT. The company’s major export products include flakes, calcium chloride, and LABSA. To boost export volumes, ICL is actively negotiating with clients from the MENA region, Europe, and Central Asia.

Future Outlook

ICL plans to expand its production capacity by introducing three new plants:

  1. BIO Mass Power Plant: Expected to start operations by the end of CY25. This plant will meet the company’s overall power requirements, with investment in a debt-to-equity ratio of 30:70, leading to a 50% reduction in power costs.
  2. Flaker Plant
  3. Calcium Chloride Plant


The information in this article is based on research by Taurus Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.

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