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Category: Corporate

  • Fertilizer industry provides Rs900 bn benefit to farmers

    Fertilizer industry provides Rs900 bn benefit to farmers

    KARACHI: Fertilizer industry is providing benefit of Rs900 billion to farmers through the provision of urea at significant discount.

    The local fertilizer Industry is providing urea at around 84 per cent discount, equivalent to Rs9,823 per bag, and is expected to enable import substitution of $5.3 billion in 2022.

    READ MORE: FrieslandCampina Engro Pakistan posts 21% Q1 growth

    Discussing the latest business results and future outlook in first quarter analyst briefing, Imran Ahmed – Chief Financial Officer of Engro Fertilizers shared that the fertilizer sector is passing on a benefit of Rs900 billion per annum to farmers through the provision of urea at significant discount to current global prices.

    Over the last 10 years, the industry is passed on benefit of over Rs1.4 trillion to the farmers through lower urea prices. This amount is four times higher the benefit that industry has received through gas pricing under the Fertilizer Policy 2001.

    READ MORE: Engro Corp declares over 19% growth in annual profit

    At the same time, the industry has been playing a significant role towards reducing the country’s trade and fiscal deficit as the country is self-sufficient in urea production.

    In the last annual general meeting of the Company, shareholders expressed concerns over the sharp disparity between international and local urea prices. Shareholders further added that the company has been losing shareholders’ value by pricing urea at a significant discount to import parity.

    Imran Ahmed emphasized that urea demand has increased by 17% in Q1 2022 compared to the same period last year.

    READ MORE: Ghais Khan elected OICCI president

    The Company’s research indicates that, as per crop mix and cultivated area for the first quarter, there has been an estimated increase of 2% in agronomic demand.

    He added that this situation may in part be due to advance buying by the farmers, but also indicates a strong probability of product movement across border emanating from significant disparity among local and international urea prices.

    Imran also highlighted the challenges faced by fertilizer industry, including recoveries of outstanding subsidy and sales tax receivables from the Government, disallowances made under Income & Sales Tax for sales to unregistered dealers, and FBR clarification on Concessionary custom duty withdrawing the concession / relief given earlier.

    READ MORE: Engro Corp declares 32% revenue growth

    He also stated that continued Government support will be required to resolve these pressing matters, which will allow Engro Fertilizers to continue to play its role in transforming the agricultural landscape of Pakistan and to ensure long-term food security of Pakistan.

  • FrieslandCampina Engro Pakistan posts 21% Q1 growth

    FrieslandCampina Engro Pakistan posts 21% Q1 growth

    KARACHI: FrieslandCampina Engro Pakistan Limited (FCEPL) has reported revenue of Rs14 billion in the first quarter ended March 31, 2022, posting an increase of 21 per cent.

    The company reported revenue of Rs14 billion in the first quarter, showcasing 21 per cent growth versus last year. The growth was led by improvement in the portfolio mix, coupled with an increase in volumes of both, the Dairy & Beverages and the Frozen Desserts segments.

    Riddled with sharp increases in commodity costs due to continued inflation and the devaluation of the Pakistani Rupee, the business environment remained fraught with challenges. Consequently, the Gross Margins declined by 140bps.

    READ MORE: Engro Corp declares over 19% growth in annual profit

    However, the Company continued to drive cost-efficiencies through multiple cost-saving initiatives, which resulted in FCEPL registering a post-tax profit of Rs664 million in Q1 vs Rs547 million in the same period last year – an improvement of 10bps.

    Committed to improving standards and nourishing Pakistan, FCEPL established the Pakistan-Netherlands Dairy Development Centre, in collaboration with the University of Veterinary and Animal Sciences (UVAS). By leveraging Netherland’s rich dairy expertise, the Centre aims to improve Pakistan’s dairy development capacity and quality by increasing production, improving food security, enhancing food-safety, and integrating sustainability in Pakistan’s dairy value chains and food landscape.

    READ MORE: Ghais Khan elected OICCI president

    Dairy and beverages

    The Dairy and Beverages segment reported a revenue of Rs12.8 billion, registering a 19.5 per cent growth year-over-year. The segment’s growth was led by Olper’s as it continued to strengthen its position as the market leader with ongoing brand and trade investments. The segment witnessed significant expansion in the retail footprint and E-Commerce channel during the quarter and will continue to explore new channels and route to markets to serve its customers effectively and efficiently.

    To simultaneously diversify and strengthen its portfolio, and solidify its association with mornings, the Company launched Olper’s Cheese, which offers the nutritional equivalent of one glass of Olper’s milk (200g) in every slice of Olper’s cheese (20g). Additional recent launches including Olper’s flavored milk, Olper’s full cream milk powder (FCMP), Olper’s pro-cal, Olper’s cream and Tarang Elaichi, continued to accumulate market share.

    READ MORE: Engro Corp declares 32% revenue growth

    Frozen desserts

    With revenue of Rs1.2 billion, the frozen desserts segment reported a growth of 34.1 per cent vs the same period last year. Offering a value-added product at an affordable price, the Company launched the O’more Double Choco Chips Cone in 2022 at a price point of Rs50, which was well-received in the market and is expected to grow.

    Future outlook

    The business environment remains fragile as rising inflation and currency devaluation continue to pressure profitability. However, several optimisation initiatives are being taken to improve efficiencies and manage inflation.

    At FCEPL, our purpose is to transform the health and well-being of Pakistanis, now and for generations to come. We will continue to partner with the Pakistan Dairy Association (PDA) and the Government on various initiatives to educate the consumers on the potential health hazards of loose milk consumption and reinforce the positive characteristics of safe packaged milk.

    Our business will continue to invest in our people, processes, and projects to deliver unparalleled value and superlative quality, driven by innovation and technology. This will strengthen our brand equity and enable us to be the preferred choice for consumers’ dairy needs and expand our profit accretive portfolio to leverage margins.

    The Company remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.

    The Company’s Annual General Meeting was held on April 20, 2022 at the Royal Rodale in Karachi. Shareholders and the Board of Directors discussed the Company’s performance in 2021 and the MD/CEO gave a short presentation on the Company’s performance.

  • Supernet raises Rs475 million through book building

    Supernet raises Rs475 million through book building

    KARACHI: Supernet Limited has raised Rs475 million through book-building at GEM Board of PSX. The process has concluded with an oversubscription of 1.4 times, the company said on Wednesday.

    The total bids received are worth Rs659 million while the strike price clocked in at Rs22.50.

    READ MORE: Supernet scrip receives overwhelming response

    The first ever GEM Board listing of an IT company received an overwhelming response from institutional investors and, Roshan Digital Accounts holders and high-net worth individuals as Supernet has raised Rs 475 million in total, making it the largest IT listing at GEM Board of PSX.

    Apart from local investors, foreign financial institutions also took keen interest in the initial offering of first IT Company on GEM Board of PSX.

    The issue consists of 21,111,121 Ordinary Shares, representing 18.81 per cent of the total post-offering paid up capital of Supernet of face value of Rs10 each.

    READ MORE: Supernet awarded Shariah screening certificate

    The entire issue was offered through Book Building on April 12-13 at a Floor Price of Rs22.50 per share, including premium of Rs12.50 per share.

    Super Net has been offered at FY22 PE of 6.7 against Avg. IT sector PE of 22X, offering significant value to the investors.

    This offering will help revive new listings at PSX once again. There is lot of demand for tech related stocks and that is why we saw higher than anticipated bids in the book building of SuperNet says Mohammed Sohail CEO of Topline Securities who acted as Advisor and Book Runner to the issue.

    READ MORE: Supernet set to raise Rs475 million through initial offering

    Jamal Nasir, CEO Supernet Limited, in his statement thanked the institutions and individual investors for showing interest and trust in Supernet and hopes that their investment in the company would yield great returns. “We have offered great value to our investors and their trust and investment would grow with Supernet.”

    Recently, Supernet Group is aggressively expanding into Cyber Security, Power Solution and IT & Infrastructure Solutions business. The proceeds from listing will be utilized to finance the expansion plan.

    READ MORE: Supernet wins ZTBL projects worth Rs450 million

    For expansion into new business segments, SNL has set up two new subsidiaries: Supernet Secure Solutions Private Limited and Supernet Infrastructure Solutions Private Limited . Another subsidiary, Phoenix Global (Supernet Global Solutions), is a UAE based company that offers a wide range of IT & Communication solutions to its international clients. Supernet’s clientele include major banks, mobile operators, leading MNCs, government and defence institutions, etc.

    Founded in 1995, it is one of the country’s leading telecommunications service provider and systems integrator. The company offers a full portfolio of local-to-global integrated communications infrastructure solutions to telecoms, defense, private firms and government sectors/customers and has a pool of highly trained and experienced human resource in wide range of communication and IT technologies spread across Pakistan in more than 200 cities and towns.

  • Supernet scrip receives overwhelming response

    Supernet scrip receives overwhelming response

    KARACHI: Supernet Limited, the first IT company to be listed at GEM Board of PSX, has received overwhelming response by investors on first day of its book building on April 12, 2022. The book buying is continued on April 13, 2022 (today) too.

    With an oversubscription of 1.99% on first day of its book building, Supernet received total bids of 21,530,720 shares against an offer of 21,111,121 shares, over subscription by 1.99% or 419,599 shares on Day 1.

    READ MORE: Supernet awarded Shariah screening certificate

    The first ever GEM Board listing of an IT company received an overwhelming response from institutional investors and high-net worth individuals.

    Supernet has a target to raise betwen 475 million to 666 million through listing at GEM Board of PSX.

    READ MORE: Supernet set to raise Rs475 million through initial offering

    Apart from local investors, foreign financial institutions also took keen interest in the initial offering of first IT company on GEM Board of PSX.

    The issue consists of 21,111,121 Ordinary Shares, representing 18.81 per cent of the total post-offering paid up capital of Supernet of face value of Rs10 each.

    The entire issue was offered through Book Building on April 12-13 at a Floor Price of Rs22.50 per share, including premium of Rs12.50 per share.

    READ MORE: Supernet wins ZTBL projects worth Rs450 million

    Recently, Supernet Group is aggressively expanding into Cyber Security, Power Solution and IT & Infrastructure Solutions business. The proceeds from listing will be utilized to finance the expansion plan.

    For expansion into new business segments, SNL has set up two new subsidiaries: Supernet Secure Solutions Private Limited and Supernet Infrastructure Solutions Private Limited . Another subsidiary, Phoenix Global (Supernet Global Solutions), is a UAE based company that offers a wide range of IT & Communication solutions to its international clients. Supernet’s clientele include major banks, mobile operators, leading MNCs, government and defence institutions, etc.

    READ MORE: Supernet, Avara awarded project for supply, maintenance

  • Shan Foods distributes ration during Ramadan

    Shan Foods distributes ration during Ramadan

    KARACHI: Shan Shares, the CSR identity of Shan Foods, in partnership with the Robin Hood Army, conducted a ration distribution drive for the month of Ramadan.

    The Robin Hood Army is a volunteer-based, zero-funds organization that works to feed less fortunate people in its commitment to beat global hunger.

    The organization is expanded across international borders, actively operating in 12 countries including Pakistan, India, Bahrain, Nigeria, and Uganda.

    Channeling the spirit of sharing and kindness through this drive, Shan Shares, along with the Robin Hood Army, distributed ration packs among underprivileged people in Karachi’s Korangi area to help them meet their nutritional needs as they fast during the month of Ramadan.

    Shan Foods employees also volunteered during the drive, displayirorporate Communications and PR at Shan Foods, while appreciating the employees and the success of the distribution drive, said, “Shan Shares is one family that is committed to creating a positive impact and making a difference in the society by uplifting and enabling the people in need. We believe this is our duty towards our fellow citizens to shape an equitable and prosperous society for everyone.”

    Shan Shares has been diligently working for restoring a sustainable world for the welfare of the people and the society. The organization hopes to take forward Shan Foods’ mission of battling hunger among other goals and is taking impactful steps to achieve it.

  • Supernet awarded Shariah screening certificate

    Supernet awarded Shariah screening certificate

    KARACHI: Supernet Limited, a subsidiary of Telecard Limited has been awarded Shariah Screening Certificate by Meezan Bank Limited, based on the review of consolidated financial statements of SNL, certifying its compliance with KSE Meezan Islamic Index Criteria set out by Pakistan Stock Exchange.

    READ MORE: Supernet set to raise Rs475 million through initial offering

    This was announced in a notice by Telecard sent to Pakistan Stock Exchange on Monday.

    According to Meezan Bank letter, Meezan Bank Limited, in the capacity of Banker to the book building, reviewed the Consolidated Audited Financial Statements of Supernet Limited based on June 30, 2021 which are in compliance with KSE Meezan Islamic Index Criteria set out by Pakistan Stock Exchange.

    READ MORE: Supernet wins ZTBL projects worth Rs450 million

    On the basis of reviewed financial statements, it is allowed to participate in initial offering of Supernet Limited with the provision that the investee will be required to purify is dividend income as per company’s annual dividend purification rate determined on semi-annual basis in KMI- All Share Islamic Index.

    This is pertinent to highlight that the Shariah compliance status of the company’s financial statements may vary from one financial period to the other. So, this certificate shall remain valid as long as company’s latest available financial statements are for the period ended June 30.

    READ MORE: Supernet, Avara awarded project for supply, maintenance

  • Lucky Cement installs 34MW solar power project

    Lucky Cement installs 34MW solar power project

    KARACHI: Lucky Cement Limited and Reon Energy on Thursday announced a 34 MW captive solar power project with a 5.589 MWh Reflex energy storage.

    •The project was announced in partnership with Reon Energy Pakistan’s leading Solar and Storage Solutions Specialist

    •The project is set to be installed at Lucky Cement’s Pezu plant in Khyber Pakhtunkhwa.

    •The project will cut around 29,569 Tonnes of CO2 equivalent emissions annually.

    The project set to be installed at Lucky Cement’s Pezu plant in Khyber Pakhtunkhwa will hold not only Pakistan’s largest on-site captive solar plant but also the largest ever energy storage solution.

    READ MORE: Lucky Cement announces Rs17.15 billion earnings for first half

    The 34MW solar PV project is expected to produce approximately 48 GWh (Gigawatt hours) annually. The output energy will be used on-site resulting in substantial savings for the company in cost of energy and will also cut around 29,569 Tonnes of CO2 equivalent emissions annually.

    Speaking about the project, Noman Hasan, Executive Director, Lucky Cement Limited: “The company has always ensured to introduce and adopt the latest technologies in line with its vision of promoting sustainable business practices.

    “This advancement will not only enhance our plant’s efficiency but will also support in curtailing Carbon emissions.”

    READ MORE: Lucky Cement wins corporate excellence award

    Considering the global environmental challenges, it is important to invest in such technologies, especially on the industrial level. Being an industry leader we understand our responsibility towards the environment and through such investments, we are committed to ensuring a sustainable future, he added.

    Lucky Cement Limited becomes the third such company in Pakistan to install Reflex energy storage. This will improve the reliability of the power system by absorbing the variations of the Solar Plant and improve the overall generation efficiency by shutting down 20 MW of fossil fuel generation during the daytime whilst keeping the critical spinning reserve intact. Furthermore, storage will build flexibility into the cement plant’s power system, and allow quick response in case of any power faults enabling 24/7 operations.

    Lucky Cement Limited’s contribution to conservation falls into two categories: the efforts of the Company to preserve and enrich the environment in and around its areas of operation, and the philanthropic thrust of the Company, which supports society with the management of natural resources, community development, and livelihoods.

    The company has extensively invested in implementing projects that reduce energy consumption and address issues of environmental degradation. These projects not only bring production efficiencies but have significantly reduced carbon emissions.

  • Supernet set to raise Rs475 million through initial offering

    Supernet set to raise Rs475 million through initial offering

    KARACHI: Supernet Limited has planned to raise Rs475 million through Initial Offering of its 18.81 per cent of post-offering share capital.

    The capital being raised by listing the firm on the GEM Board of the Pakistan Stock Exchange (PSX) will consist of fresh equity of Rs275 million in Supernet and ‘Offer for Sale’ by Telecard Limited of Rs200 million.

    Supernet is the first technology company to be listed on GEM Board of PSX.

    READ MORE: Supernet wins ZTBL projects worth Rs450 million

    The issue consists of 21,111,121 Ordinary Shares, representing 18.81 per cent of the total post-offering paid up capital of Supernet of face value of Rs10 each.

    The entire issue will be offered through Book Building on April 12-13 for which registration will Start from April 7 at a Floor Price of Rs22.50 per share, including premium of Rs12.50 per share. The upper limit of the price band will not be more than 40 per cent of the Floor Price.

    READ MORE: Supernet, Avara awarded project for supply, maintenance

    Super Net is being offered at FY22 PE of 6.7 vs Avg. IT sector PE of 22X, offering significant value to the investors.  Out of the total issue, 8,888,889 shares are being offered as Offer for Sale by Telecard and 12,222,232 shares are being offered as fresh equity.

    Founded in 1995, it is one of the country’s leading telecommunications service provider and systems integrator. The company offers a full portfolio of local-to-global integrated communications infrastructure solutions to telecoms, defense, private firms and government sectors/customers and has a pool of highly trained and experienced human resource in wide range of communication and IT technologies spread across Pakistan in more than 200 cities and towns.

    READ MORE: Supernet awarded telecom projects worth Rs100 million

    Recently, Supernet Group is aggressively expanding into Cyber Security, Power Solution and IT & Infrastructure Solutions business. The proceeds from listing will be utilized to finance the expansion plan.

    For expansion into new business segments, SNL has set up two new subsidiaries: Supernet Secure Solutions Private Limited and Supernet Infrastructure Solutions Private Limited . Another subsidiary, Phoenix Global (Supernet Global Solutions), is a UAE based company that offers a wide range of IT & Communication solutions to its international clients. Supernet’s clientele include major banks, mobile operators, leading MNCs, government and defence institutions, etc.

    READ MORE: Suprenet gets project for optic fiber supply

  • SBP issues electronic money license to Careem Pay

    SBP issues electronic money license to Careem Pay

    KARACHI: State Bank of Pakistan (SBP) has granted Careem Pay with an In-Principle-Approval (IPA) for an Electronic Money Institution license (EMI).

    Careem has launched Careem Pay, its fintech affiliate, in Pakistan as an independent entity which plans to invest $50 million to leapfrog the fintech ecosystem in Pakistan. It will be led by Noman Khurshid as its General Manager.

    This paves the way for Careem Pay to bring convenient and accessible financial services to 9+ million Customers, 800,000 Captains and 3000+ merchants both on and beyond the Careem App, subject to SBP final approval.

    Once Careem Pay achieves operational readiness from SBP, it will offer services ranging from bill payments including utilities, government and education fees, peer-to-peer (P2P) transfer and wallet cash-outs.

    READ MORE: Careem signs agreement to provide logistic solution to Unilever

    In subsequent phases and subject to approvals from SBP, Careem Pay aims to provide cards, inward international remittance services as well as services that will enable Customers and merchants to make and accept online or offline payments.

    This adds to the existing services available through Careem Pay which supports payment across all Careem services including ride-hailing and food delivery, as well as P2P credit transfer and mobile top-ups within the app.

    Mudassir Sheikha, CEO and Co-founder of Careem said: “Careem Pay aims to simplify and improve lives by making everyday payments easier and more accessible for our Customers, Captains and merchants.

    “We are thankful to the SBP for trusting us with an IPA for the EMI license which gives us an immense opportunity to empower people by delivering innovative payment experiences. With approximately 30 per cent of the total population and 18 per cent of women banked in Pakistan, we see this as an enormous opportunity to leapfrog cash payments into digital transactions. Chalo ‘Careem Pay’!”

    READ MORE: Careem Pakistan asked to facilitate expatriates availing services in country

    Noman Kurshid, GM Pakistan, Careem Pay added: “Careem is uniquely positioned to tap into the digital financial opportunity in Pakistan. With a massive Customer, Captain and merchant base across the country, conducting high frequency transactions on our platform, we understand the pain points and are well placed to deliver solutions to address them. We are excited to play our role in the digitization of Pakistan’s financial ecosystem and enhancing financial inclusion.”

    Pakistan is bracing itself for a fintech revolution as the fifth most populous country in the world. Safe digital payment providers will be crucial to reducing Pakistan’s high levels of cash circulation which amounts to Rs7 trillion and 85 per cent cash-on-delivery via e-commerce.

    With the significant growth in smartphone penetration in Pakistan, Careem Pay will enable Customers, Captains and merchants to access more simplified and convenient payment services.

  • Meezan Bank provides bill discounting facility for Huawei

    Meezan Bank provides bill discounting facility for Huawei

    KARACHI: Meezan Bank has successfully instituted an Islamic alternate to Inland Bill Discounting Facility for Huawei Technologies Pakistan (Pvt.) Limited – a first-of-its-kind transaction in Islamic banking industry, developed as a Shariah-compliant alternate to local bill discounting facility.

    READ MORE: Meezan Bank lends Rs1 billion under youth scheme

    The first drawdown under the facility was made against a deferred payment inland Letter of Credit (LC) opened by Pak Telecom Mobile Limited (Ufone) in favour of Huawei. The transaction has been developed by the Bank under the supervision and guidance of Dr. Muhammad Imran Ashraf Usmani – Vice Chairman Shariah Board, Meezan Bank, after a series of deliberations and persistent efforts.

    READ MORE: Meezan Bank announces 26% growth in annual profit

    On this occasion, Abdullah Ahmed – Group Head, Corporate & Institutional Banking, Meezan Bank stated: “Meezan Bank is pleased to offer yet another milestone solution for the Islamic banking industry i.e., a Shariah-compliant alternative to discounting of long tenor inland bills with provision of variable profit rates. We are hopeful that this solution will serve as a precedent for unique transactions pertaining to trade within telecom industry.”

    READ MORE: Meezan Bank, Suzuki Motors sign MoU for car financing

    Ahmed Ali Siddiqui – Group Head, Shariah Compliance, Meezan Bank, stated, “This endeavour of Meezan Bank displays its capability to develop out-of-the-box, innovative and Shariah-compliant solutions and reinforces its position as the leading Islamic bank of the country. We hope this solution will open a new chapter in facilitating trade among businesses and industries in a Shariah-compliant way and bring more businesses and trade into fold of Islamic banking.”

    READ MORE: Meezan Bank starts Islamic financing scheme for SMEs