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Category: Corporate

  • K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    KARACHI: K-Electric Limited, the electricity generation and supplier company, has declared huge after tax loss of Rs16.35 billion for the quarter ended September 30, 2022 massive jump of 144 per cent in revenue received through tariff adjustment.

    According to consolidated financial results for the quarter ended September 30, 2022, the company announced after tax loss of Rs16.35 billion as compared with the after tax profit of Rs2.88 billion in the same period of the last year.

    The company announced earnings per share at 59 paisas for the three months period ended September 30, 2022 as compared with EPS of 10 paisas in the same period of the last year.

    Board of directors of KE met on October 28, 2022 to approve the financial results.

    The company declared huge losses despite the massive jump in revenue from tariff adjustment. KE received Rs65.97 billion as tariff adjustment for the quarter ended September 30, 2022 as compared with Rs27.22 billion in the corresponding period of the last year, showing an increase of 144 per cent.

    Total revenue of the company recorded at Rs154.58 billion for the quarter under review as compared with Rs114.17 billion in the same quarter of the last year.

    Cost of sales increased to Rs146.53 billion for three months period ended September 30, 2022 as compared with Rs97.53 billion in the same period of the last year.

    Company official said that the difficult socio-political challenge both locally and at international fronts, have had a consequential impact on the macro-economic factors.

    The economic impact has reverberated through multiple channels, including commodity and financial markets, surging inflation, increasing policy rates and reduction in economic activity. Impacted by these challenges, the Company has observed a reduction in units sent-out by 8.9 per cent and the gross profitability of the Company declined significantly.

    The company operates under regulated tariff and as per current Multi-Year Tariff effective from July 01, 2016, no adjustment is provided to the Company in tariff for changes in sent-out and policy rates. Further, the Company observed increase in exchange loss by PKR 2.6 billion owing to devaluation of Pak Rupee and increase in impairment loss by PKR 4.0 billion against doubtful debts due to high inflation, increase in consumer tariff, high FCA and current economic conditions impacting consumers propensity to pay.

    The aforementioned factors along with increase in finance cost by PKR 3.4 billion mainly on account of increase in effective rate of borrowing and higher levels of borrowing due to non-payment of dues by Government entities, translated into the loss after tax amounting to PKR 16.3 billion.

    The Company is geared up to face the challenges and focusing extensively on further operational improvements as detailed in the relevant business section and also working diligently for renewal of tariff for the next control period starting from July 01, 2023, with an aim to obtain a sustainable cost reflective tariff with robust adjustments mechanism at par with other power sector entities to ensure continuity of reliable and smooth service to consumers at least possible costs.

  • Jazz supports breast cancer awareness campaign

    Jazz supports breast cancer awareness campaign

    KARACHI: Aimed at raising awareness on breast cancer, Jazz, Pakistan’s leading digital operator and the largest internet and broadband service provider, conducted month-long campaigns to drive reinforcement for prevention, reminder of periodic checkups, and educate the masses including its own employees.

    Pakistan has the highest incidence of breast cancer among Asian countries; one in nine women is at risk of being diagnosed with breast cancer, and 40,000 women die of breast cancer every year, out of which only 19,000 women are diagnosed with breast cancer.

    Jazz offices and experience centers were lit up pink to serve as a reminder and draw attention to this critically important message, encouraging women to have regular check-ups and destigmatize the taboos associated with breast cancer.

    Additionally, the company collaborated with Pink Ribbon to organize nationwide awareness sessions for all branches and joined hands with Shaukat Khanum Memorial Cancer Hospital and Research Centre for SMS and billboard awareness campaigns.

    “Jazz is committed to empowering Pakistani women through the power of the internet by providing digital access to effective, quality essential health care services. With over 21,000 women remaining undiagnosed with breast cancer, our campaigns were aimed at creating conversation around this topic. Our thoughts and prayers remain with those who have lost their lives fighting against breast cancer,” said Sabahat Bokhari, Head of D&I, Jazz.

    Shaukat Khanum, Pink Ribbon, and ITTEHAD teams also visited Jazz offices to highlight the importance of breast cancer early detection, destigmatizing the examination, timely diagnosis, and efficient treatment methods. Jazz has provided employees with Pink Cards (valid for family members as well), which offer females up to 50% discount on various healthcare tests such as hormone profiles, and mammograms, among other women-related medical tests.

  • Standard Chartered Bank Pakistan PBT doubles during 9MCY22

    Standard Chartered Bank Pakistan PBT doubles during 9MCY22

    KARACHI: Standard Chartered Bank Pakistan Limited (SCBPL) has posted a record profit before tax of PKR 36.4 billion, registering almost 100 per cent increase year on year. Performance was driven by strong income growth, as well as continued cost and risk discipline.

    Overall revenue grew by 70 per cent to deliver a top-line of PKR 45.1 billion, with positive contributions from all segments. Despite a high inflationary environment and continuous investments in our infrastructure, operating expenses continue to be well managed through efficiencies and disciplined spending with an increase of 12 per cent from the same period last year.

    Moreover, reversal of Covid-19 general provision, coupled with lower impairments and strong recoveries led to a net release of PKR 1.5 billion during the period against a net release of PKR 0.8 billion in loan impairments in the comparative period.

    With a diversified product base, the Bank stands well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by PKR 108.0 billion (up 17 per cent), whereas current and saving accounts increased by PKR 119.0 billion (up 21 per cent) since the start of this year and comprise 95 per cent of the deposit base. Advances declined marginally since the start of this year and the Bank continues to monitor the portfolio in the prevailing economic environment as part of its strategy to build a profitable, efficient, and sustainable business.

    The external environment remains challenging; however, we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan. Standard Chartered continues to make good progress against its strategic priorities.

    The global network differentiates the Bank for its clients, bringing forth innovative solutions, product specialisation and structured offshore offerings. At all times the Bank strives to maximise the contribution to State Bank’s initiatives. In line with the State Bank’s efforts on financial inclusion, with enhanced digital offering, Standard Chartered is now able to reach more clients across the country and provide them with convenience of opening accounts as well as subscribing to products and banking services online. Overall, the Bank’s transformation journey stands well-curated, closely aligned with the Pakistan’s landscape and helping lift participation through digitization.

    Sustainable finance along with digital solutions for clients and their ecosystem stay as areas of keen focus for the Bank. The Bank continues efforts under its initiative ‘Futuremakers by Standard Chartered’ initiative to tackle inequality and promote greater economic inclusion for young people in the community. Standard Chartered has also contributed towards emergency relief and rehabilitation of communities impacted by the recent floods that have caused devastation in Pakistan.

    Commenting on the results, Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said, “I am pleased to share our results for the first three quarters of 2022 which clearly reflect strong foundations, enhanced productivity and good headway towards achieving our strategic priorities. The results give me the confidence that we have the right strategy to deliver real value to our clients, our investors and the communities where we operate. I am thankful to our clients and business partners for their ongoing trust in our capabilities and to our associates and colleagues for their commitment, passion and hard work in supporting the Bank in its journey.

    We are investing heavily in our people, giving colleagues the skills they need to succeed, bringing in expertise in critical areas and evolving to a more innovative and agile operating model, as we strive to drive innovation and increase our operational efficiency further. This operational leverage allows us to create capacity to invest in the many exciting and potentially transformational initiatives as the Bank’s pivot to digital continues.

    The external environment remains challenging; however we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best in class services and solutions for our clients and playing our part in the growth story of Pakistan.”

    With a strong Return on Equity (ROE) of 23.5 per cent for the period and a Capital Adequacy Ratio (CAR) of 17.7 per cent, the Bank remains well positioned for future growth.

  • Indus Motor declares 76% fall in net profit during 1QFY23

    Indus Motor declares 76% fall in net profit during 1QFY23

    Indus Motor Company Limited (INDU) has declared massive fall of 76 per cent in its net profit during first quarter (July – September) of the fiscal year 2022/2023.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Thursday, the company declared after tax profit at Rs1.29 billion for the quarter ended September 30, 2022 as compared with Rs5.42 billion in the corresponding quarter of the last fiscal year.

    Indus Motor, which is maker of Toyota Motors in Pakistan, also announced earnings per share t Rs16.50 for the first quarter of the current fiscal year as compared with the EPS of Rs69.02 in the same quarter of the last year.

    Board of directors of the company met on October 26, 2022 and announced first interim cash dividend for the quarter ended September 30, 2022 at Rs8.20 per share i.e. 82 per cent.

    Analysts at Ismail Iqbal Securities said that topline of the company arrived in at Rs37.3 billion against the estimates of Rs42.9 billion, down 48 per cent and 43 per cent on Quarter on Quarter (QoQ) and Year on Year (YoY) respectively, primarily as result of 51 per cent and 52 per cent QoQ and YoY decline in car sales volumes.

    The deviation in revenue could be due to rise in compensation on advances from customers and car prices revisions yet to reflect as cars might have been sold at March 2022 and April 2022 prices during the quarter.

    Gross margins fall to lower ever levels of 6.3 per cent on account of depreciation of Pakistani Rupee (PKR) against the US dollar and lag price hike that is yet to reflect, according to the analysts.

    Elevated deposit rates resulted in other income clocking in at Rs5.16 billion fell one per cent QoQ, despite likely fall in advances. Effective tax rate clocked in at 29.5 per cent against 88.1 per cent recorded in the last quarter.

  • OGDCL announces huge oil discovery at Attock

    OGDCL announces huge oil discovery at Attock

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Thursday announced huge oil discovery at Attock District, Punjab Province, Pakistan.

    The company shared the information of oil discovery with the Pakistan Stock Exchange (PSX) and London Stock Exchange.

    READ MORE: OGDCL discovers gas deposits at Kohat District

    In its communication, the company said that OGDCL being operator of Toot Mining Lease with 100 per cent working interest has made oil discovery from Lockhart Formation at Toot Deep-1 well which is located in Attock District, Punjab province, Pakistan.

    READ MORE: Latest petroleum prices in Pakistan

    Toot Deep # 01 well was spudded-in on December 25, 2022 and successfully drilled down to total depth at 5545 meters in Tobra Formation. Based on interpretation results of open hole logs data, Lockhart Formation has successfully tested oil at the rate of 882 Barrel per day and 0.93 million standard cubic feet per day (MMSCFD) gas at well head flowing pressure (WHFP) of 600 pounds per square inch (psi) at 32/64” choke size.

    READ MORE: Techaccess Pakistan hosts session on in power sector cybersecurity

    “This discovery has further extended the hydrocarbon play area in Pothohar basin, OGDCL being leading exploration and production company in Pakistan has adopted aggressive exploration strategies which has resulted in hydrocarbon discoveries.”

    This discovery will add to the hydrocarbons reserves base of OGDCL and contribute positively towards oil and natural gas production from indigenous resources of Pakistan, the company added.

    READ MORE: Lucky Cement installs 25.3 MW solar energy plant at Karachi

  • Pak Suzuki Motors posts hefty loss of Rs2.5 billion in third quarter

    Pak Suzuki Motors posts hefty loss of Rs2.5 billion in third quarter

    Pak Suzuki Motors Company Limited (PSMC) on Wednesday declared massive loss of Rs2.5 billion for third quarter (July – September) 2022.

    According to financial results submitted to Pakistan Stock Exchange (PSX), the company announced its third quarter of current year results where it posted loss after tax of Rs2.5 billion compared with profit of Rs443 million in the second quarter. The loss per share of the company came at Rs30.2 as compared with earnings per share Rs5.4 during the period under review.

    The cumulative loss for nine months of current year (January – September 2022) to Rs2.5 billion with loss per share of Rs30.5/-.

    Analysts at AKD Securities Limited said that earnings for the quarter are well below industry expectations due to finance costs going through the roof, clocking in at Rs4.8 billion for the quarter.

    Revenue for the quarter has decreased by 54 per cent quarter on quarter (QoQ) to reach Rs29.8 billion, while also down by 41 per cent year on year (YoY).

    The gross margin in third quarter of the current year clocked in at 5.2 per cent in contrast to the 4.4 per cent in the second quarter of the year. Despite significant currency depreciation, the company has hiked its prices in accordance, with the revised prices of June effective on some of the cars delivered, the analysts added.

    They further said that finance costs have beaten expectations by a mile. With the Rs4.8 billion consisting of hefty compensation on late deliveries, likely north of Rs3 billion. The rest of the distance consists of exchange losses due to the revaluation of foreign trade creditors.

    The company has sustained its strong other income in the quarter, clocking in at Rs1.1 billion owing to strong income from cash balance. The amount is significantly lower than the estimates, primary due to cash balance being diminished by the hefty payments on late deliveries.

  • MCB Bank declares highest ever quarterly profit before tax

    MCB Bank declares highest ever quarterly profit before tax

    LAHORE: MCB Bank Limited on Wednesday announced the highest ever quarterly profit before tax of Rs19.05 billion in the third quarter ended September 30, 2022.

    With strong build up in core earnings, MCB’s Profit Before Tax (PBT) for the nine months period ended September 30, 2022 increased to Rs 51.6 billion against PBT of Rs 38.3 billion of corresponding period last year.

    The Board of Directors of MCB Bank Limited (MCB) in its meeting under the Chairmanship of Mian Mohammad Mansha, on October 26, 2022, reviewed the performance of the Bank and approved the interim financial statements for the nine months period ended September 30, 2022.

    The Board of Directors has declared a 3rd interim cash dividend of Rs. 5.0 per share i.e. 50 per cent, in addition to 90 per cent already paid, bringing the total cash dividend for the nine months period ended September 30, 2022 to 140 per cent.

    Retrospective application of tax amendments along with higher tax rates for current period enacted through Finance Act, 2022 resulted into 62 per cent average tax rate for the nine months ended September 30, 2022 as compared to average tax rate of 41 per cent for the corresponding period last year. Profit After Tax (PAT) registered a decline of 12 per cent from Rs. 22.6 billion to Rs. 19.9 billion; translating into Earning Per Share (EPS) of Rs. 16.75 compared to an EPS of Rs. 19.03 in corresponding period last year.

    On the back of strong volumetric growth in current account and favourable yield curve movements, net interest income for nine months period ended September 2022 increased by 29 per cent over corresponding period last year. Average current deposits of the Bank registered a growth of Rs. 91.6 billion (+17 per cent) YoY.

    Non-markup income registered a growth of 41 per cent and reported a base of Rs. 20.25 billion against Rs. 14.38 billion in the corresponding period last year. The contribution from foreign exchange line, debit cards, trade business and home remittances remained strong during the period.

    Despite exceptionally high inflation, impact of currency devaluation and continued investments in human resources, branch network and technological upgradation, operating expenses of the Bank were recorded at Rs. 30.52 billion, growing by a modest 16 per cent year on year, while the cost to income ratio significantly improved to 37.3 per cent from 42.5 per cent reported in corresponding period last year.

    Proactive monitoring and recovery efforts led to a net provision reversal against non-performing loans (NPLs) which aggregated to Rs. 1,883 million for the period under review. Persistent focus on maintaining a robust risk management framework encompassing structured assessment models, effective pre-disbursement evaluation tools and an array of post disbursement monitoring systems has enabled MCB to effectively manage its credit risk. The Non-performing loan (NPL) base of the Bank was reported at Rs. 52.47 billion. The Bank has not taken FSV benefit in calculation of specific provision against its NPLs. The coverage and infection ratios of the Bank were reported at 85.14 per cent and 8.37 per cent, respectively.

    On the financial position side, the total asset base of the Bank grew by 5.4 per cent and was reported at Rs. 2,076 billion. Gross advances registered a slight decline of Rs. 9 billion (-1 per cent), whereas the consumer lending book grew by Rs. 4.8 billion (+12 per cent).

    During the period under review, MCB’s strategic objective of achieving growth in no-cost current account base was reinforced by an uncertain and volatile interest rate scenario, leading to persistent re-pricing gaps between the earning assets and liabilities. Hence, the Bank registered a growth of 21 per cent in non-remunerative deposits to close the period at Rs. 680.33 billion. CASA mix was reported at an industry leading level of 93.73 per cent which reflects customer loyalty earned by the Bank over 75 years through sustained provision of quality services.

    MCB attracted home remittance inflows of USD 2,666 million, during the period under review with market share of 11.5 per cent as an active participant in SBP’s cause for improving flow of remittances into the country through banking channels.

    During the ongoing year, the Bank celebrates successful completion of 75 years of its banking services to the nation. From modest beginnings, the Bank has transformed into a dynamic and innovative organization; overcoming a multitude of challenges along the way with resolve and fortitude. Recognition by the globally coveted Asia Money awards as ‘Pakistan’s Best Corporate Bank of the Year’ in 2022 is a testament to its legacy of posting consistent and exceptional performance for its stakeholders.

    While complying with the regulatory capital requirements, the Bank’s total Capital Adequacy Ratio (CAR) is 17.6 per cent against the requirement of 11.5 per cent (including capital conservation buffer of 1.50 per cent as reduced under the BPRD Circular Letter No. 12 of 2020). Quality of the capital is evident from Bank’s Common Equity Tier-1 (CET1) to total risk weighted assets ratio which comes to 16.47 per cent against the requirement of 6 per cent. Bank’s capitalization also resulted in a Leverage Ratio of 5.62 per cent which is well above the regulatory limit of 3.0 per cent. The Bank reported Liquidity Coverage Ratio (LCR) of 203.85 per cent and Net Stable Funding Ratio (NSFR) of 134.66 per cent against requirement of 100 per cent.

    Pakistan Credit Rating Agency re-affirmed credit ratings of MCB at “AAA / A1+” for long term and short term respectively, through its notification dated June 23, 2022.

    The Bank on consolidated basis is operating the 2nd largest network of more than 1,600 branches in Pakistan and remains one of the prime stocks traded in the Pakistani equity market, with 2nd highest market capitalization in the industry.

  • HBL announces fall in net profit to Rs23.63 billion in nine months

    HBL announces fall in net profit to Rs23.63 billion in nine months

    Habib Bank Limited (HBL) on Wednesday announced 12.42 per cent decline in net profit to Rs23.63 billion for nine months period ended September 30, 2022 as compared with Rs26.98 billion in the same period of the last year.

    Earnings per share (EPS) fell to Rs15.95 for the period as compared with Rs18.21 in the same period of the last year, according to consolidated financial accounts submitted to Pakistan Stock Exchange (PSX).

    Board of Directors of Habib Bank Limited met on October 26, 2022 to approve the financial results for nine months and third quarter ended September 30, 2022. The board recommended an interim cash dividend for the third quarter ended September 30, 2022 at Rs1.50 per share i.e. 15 per cent. This is in addition to the interim cash dividend already paid at Rs3.75 per share i.e. 37.5 per cent.

    READ MORE: HBL says allegations meritless

    The decline in net profit of the bank may be attributed to massive increase in tax payment during the period. HBL paid an amount Rs31.97 billion as income tax during January – September 2022 as compared with Rs19.39 billion in the corresponding period of the last year.

    Net mark-up / interest income of the bank grew to Rs116.04 billion in nine months period ended September 30, 2022 when compared with Rs97.15 billion in the same period of the last year.

    READ MORE: HBL comes under scrutiny for assisting terror organizations

    The bank booked huge earnings from foreign exchange income. The foreign exchange income of the bank sharply increased to Rs12.72 billion during January – September 2022 as compared with Rs2.91 billion in the same period of the last year.

    However, the bank incurred massive loss from derivatives which recorded at Rs3.41 billion during the period under review as compared with Rs77 million in the same period of the last year.

    Total income of the bank increased to Rs151.64 billion for nine months ended September 30, 2022 when compared with Rs122.87 billion in the same period of the last year.

    Operating expenses of HBL rose to Rs90.93 billion during first nine months of the year 2022 when compared with Rs70.01 billion in the same period of the last year.

    The bank declared profit before tax at Rs59.19 billion for nine months period ended September 30, 2022 when compared with Rs51.87 billion in the corresponding period of the last year.

  • Ismail Industries posts 150% growth in after tax profit for 1QFY23

    Ismail Industries posts 150% growth in after tax profit for 1QFY23

    KARACHI: Ismail Industries Limited has announced massive 150 per cent growth in its after tax profit for the first quarter (July – September) of the fiscal year 2022-2023.

    According to consolidated financial results shared with the Pakistan Stock Exchange (PSX), the company announced profit after tax at Rs1.21 billion for the three months period ended September 30, 2022 as compared with Rs485 million in the corresponding period of the last year.

    Earnings per share both basic and diluted is at Rs18.61 for the period under review as compared with Rs7.57 in the same period of the last year.

    Ismail Industries Limited is one of the largest food companies in Pakistan, manufacturing a wide range of confectionery, biscuits, snacks and packaging films under the brand names of CandyLand, Bisconni, SnackCity and Astro Films respectively.

    Board of Directors of the company met on October 24, 2022 approved the financial results and announced no interim cash dividend / bonus shares for the quarter ended September 30, 2022.

    Net sales of the company grew to Rs21.94 billion for the quarter ended September 30, 2022 as compared with Rs14.57 billion in the corresponding quarter of the last fiscal year.

    Cost of sales came at Rs15.45 billion for the quarter under review as compared with Rs10.43 billion in the same quarter of the last year.

    The company recorded selling and distribution expenses at Rs1.74 billion for the quarter July – September 2022 as compared with Rs1.22 billion in the corresponding quarter of the last year.

    Administrative expenses of the company were at Rs301 million for the period of three months ended September 30, 2022 as compared with Rs226 million in the same period of the last year.

    Profit before taxation recorded at Rs1.46 billion for the quarter ended September 30, 2022 as compared with Rs709 million in the same quarter of the last fiscal year.

  • Unilever Pakistan forecasts erosion in consumer purchasing power

    Unilever Pakistan forecasts erosion in consumer purchasing power

    KARACHI: Unilever Pakistan Foods Limited – fast-moving consumer goods company – on Monday said that high inflation to erode purchasing power of consumers.

    While presenting financial results for nine months period ended September 30, 2022, the company said Pakistan’s economic and operating environment remains challenging as the country continues to grapple with sustained double-digit inflation, low foreign exchange reserves and aftermath of recent floods.

    “The above factors are expected to result in a considerable overall economic slowdown and further erosion of purchasing power of the consumers.”

    It said that in the midst of the situation, the management remains committed to navigating the challenges and staying relevant to the consumer by leveraging the power of its brands, delivering delightful innovations and driving cost transformation. “We are confident that we will continue to deliver competitive, consistent, responsible and profitable growth benefitting all stakeholders,” the company added.

    The board of directors of the company met on October 24, 2022 and approved the un-audited condenses interim financial information for the nine months ended September 30, 2022.

    According to the company, despite challenging economic and political environment, the business continued its positive momentum and delivered a growth of 36.6 per cent with a healthy mix of pricing and volume.

    The growth was broad based with both retail and food solution business delivering consistent performance on the back of strong brand equity, innovations and wider distribution.

    “Inflationary headwinds resulted in a gross margin dilution of 202 basis points to 41.4 per cent. However, earnings per share grew by 33.3 per cent led by strong topline growth,” the company added.