Pkrevenue.com

Category: Corporate

  • Pak Suzuki Motor declares Rs2.68 billion annual profit

    Pak Suzuki Motor declares Rs2.68 billion annual profit

    KARACHI: Pak Suzuki Motor Company Limited (PSMC) on Tuesday announced net profit of Rs2.68 billion for the year ended December 31, 2021.

    The company had declared a loss of Rs1.38 billion during the previous year, according to financial statement shared with the Pakistan Stock Exchange (PSX).

    Analysts at Arif Habib Limited attributed the massive surge in profit to improved volumetric sales which is 108 per cent year on year (YoY), increased car prices, higher other income as well as reduction in financial charges, given significant decline in borrowings.

    READ MORE: Pak Suzuki posts sharp 285pc growth in first quarter

    Alongside the result, the company also announced a final cash dividend of Rs6.50/share.

    The highlights of the financial results of PSMC revealed that during the fourth quarter (October – December) 2021 the net sales surged by 64 per cent YoY to Rs43.71 billion owing to significant jump in sales volume, which is 68 per cent year on year, together with upward revision in prices. This took financial year 2021’s topline to Rs160.08 billion up by 109 per cent YoY.

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

    During the fourth quarter, the gross margins declined to 3.55 per cent as compared to 9.28 per cent or decline of 573 basis points in same period last year (SPLY) amid higher cost pressures emanating from substantial currency devaluation, around 4 to 5 times jump in freight costs, coupled with elevated input costs (mainly steel).

    READ MORE: TPL, Pak Suzuki sign agreement for auto insurance

    The same reasons kept the margins lower as compared to the last quarter or decline by 175 basis points. Together with this, swift’s production decline, mainly to pave way for the product’s new model, contributed further towards the suppressed margins on a quarter on quarter (QoQ) basis. This took calendar year 2021’s margins to 5.1 per cent compared to last year’s margins of 4.69 per cent, as augmented topline offset the impact of rising cost pressures.

    READ MORE: Pak Suzuki declares half year loss of Rs2.46 billion

    During the quarter, other income increased by 142 per cent YoY and 121 per cent QoQ to Rs933 million on the back of increased advances from customers, which generated higher interest income for the company. Similar trend was witnessed in calendar year ended December 31, 2021.

    During the year under review, the company booked effective taxation at 29 per cent.

  • State Life Insurance directed to pay claim to widow

    State Life Insurance directed to pay claim to widow

    ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation of Pakistan (SLICP) to pay claim of Rs412,000 to a widow along with interest amount for unnecessary delay, statement said on Sunday.

    Expressing displeasure over an unnecessary delay of seven years in the payment of life insurance claim to a widow, President Dr Arif Alvi directed the SLICP to pay the sum assured of Rs 412,000 as well as add inflation cost/interest to the accrued amount.

    READ MORE: President Alvi orders State Life to pay death insurance

    He further directed SLICP to apologize to the widow and change its financial system attitude and report compliance to Wafaqi Mohtasib within 30 days.

    The President passed these orders while rejecting a representation of SLICP against a decision of the Wafaqi Mohtasib directing it to pay the claimants the assured amount without further delay.

    READ MORE: President Alvi directs bank to refund unfair recovery

    As per the details, the deceased Mr Zahid Altaf Bhatti had obtained two life insurance policies from SLICP (the Agency) on 06.07.2007 and 25.06.2010 for the sum assured of Rs 212,000 and Rs 200,000 respectively. He died on 20.03.2015 and his wife, Mst Fouzia Zahid Bhatti (the complainant), approached the Agency to pay the insurance claim but the latter refused to pay the sum on the ground that the deceased had pre-insurance ailments and was a patient of liver disease/hepatitis C.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    Feeling aggrieved, Mst Fouzia Zahid Bhatti filed a complaint with Wafaqi Mohtasib who directed SLICP to pay the amount and report compliance within 30 days.

    Instead of implementing the orders of the Wafaqi Mohtasib, SLCIP filed a representation with the President against the decision of the Mohtasib. Rejecting the representation, President Dr Arif Alvi referred to section 80 of the Insurance Ordinance, 2000, which provides that an insurance policy cannot be called in question on the grounds of misrepresentation, false statement or suppression of material facts after two years from the date when the policy was originally effected.

    READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

    In the present case, the policies were issued in 2007 and 2010, whereas the policyholder expired in 2015, thus, the policy could not be called into question. He further noted that the Agency had failed to substantiate its claim and no clinical investigation or diagnostic assessment had been produced to corroborate the existence of pre-insurance ailment.

    The President further observed that the Confidential Report of the Field Officer had also declared the insured as healthy and categorically stated that he knew the deceased for the last 12 years.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    The President underlined that ethical principles and compassion should not be ignored in the pursuit of making profits.

    He stated that SLICP came out with frivolous excuses and delayed the payment in an unethical manner. The President advised the Agency to change its financial-system attitude and add inflation cost/interest to the accrued amount so that the beneficiary is not slighted because of pathetic delays.

  • Philip Morris posts over 30% growth in annual profit

    Philip Morris posts over 30% growth in annual profit

    KARACHI: Philip Morris (Pakistan) Limited, a public limited tobacco manufacturing company, on Tuesday announced over 30 per cent increase in profit after tax for the year ended December 31, 2021.

    The company announced profit after tax to Rs2.30 billion for the year ended December 31, 2021 as compared with Rs1.76 billion in the preceding year.

    It announced basic earnings per share at Rs37.46 for the year ended December 31, 2021 as compared with Rs16.76 in the preceding year.

    READ MORE: Philip Morris declares 37% growth in half year net profit

    The board of directors of the company met on Tuesday March 8, 2022 and approved financial statement for the year ended December 31, 2021.

    Total turnover for the year increased to Rs17.45 billion as compared with Rs16.59 billion in the preceding fiscal year. The company recorded decline in cost of sales to Rs9.97 billion as compared with Rs10.138 billion.

    The company curtailed administrative expenses to Rs1.4 billion in 2021 as compared with Rs1.62 billion in the preceding year.

    READ MORE: Philip Morris declares 39% decline in quarterly profit

    It declared profit before taxation at Rs3.34 billion for the year ended December 31, 2021 as compared with Rs2.55 billion in the preceding year.

    Philip Morris (Pakistan) Limited (PMPKL) is a public limited tobacco manufacturing company and listed on the Pakistan Stock Exchange. PMPKL is an affiliate of Philip Morris International (PMI), a leading international tobacco company, listed on the New York Stock Exchange with its Operational Headquarters in Lausanne and Corporate Headquarters in New York.

    READ MORE: Philip Morris declares Rs1.76bn after tax annual profit

    The company claimed to be the largest manufacturers of cigarettes in Pakistan and support a wide range of charitable projects in communities where it sources and manufacture our tobacco. These include providing economic opportunity, empowering women and access to education.

  • MoU signed to launch Pakistan focused equity fund

    MoU signed to launch Pakistan focused equity fund

    KARACHI: The Kuwait Investment Authority’s joint venture with the Pakistan Government, Pakistan Kuwait Investment Company (Private) Limited (PKIC) and R.J. Fleming & Co. Ltd. (RJF or RJF Dubai) have entered into a Memorandum of Understanding to jointly set up and manage (under the requisite and appropriate licenses) a Private Equity Fund in Pakistan (the Fund).

    With PKIC’s strong local footprint and experience, and R.J. Fleming’s international expertise and networks this is will be a landmark partnership in the Pakistan private equity market.

    The Fund will help proven Pakistani business entrepreneurs access growth capital to scale in the local and regional markets, provide best practice governance and upgrade business management skills enabling local or international options for listing or sale.

    With recent international institutional participation in the early-stage market in Pakistan and very large conglomerates already served well, there is a gap and opportunity to work with medium to large scale companies and with proven reputable business leaders to help achieve their true growth potential.

    Successful investments through this initiative will showcase opportunities in Pakistan and bode well for the overall private equity eco-system of the country.

    Initial seed capital for the fund shall be provided by PKIC and for subsequent rounds, funding will be raised from local as well as from international investors leveraging R.J. Fleming’s global network.

    Pakistan Kuwait Investment Company (Private) Limited (PKIC) is the largest AAA rated Development Financial Institutions engaged in investment and development banking activities in Pakistan. Established in 1979 as a joint venture between the Government of Kuwait, through Kuwait Investment Authority and the Government of Pakistan through the State Bank of Pakistan, PKIC has played a pivotal role in promoting industrial activity, by way of equity and debt investments.

    Since inception it has participated in innovative, economically viable and technically feasible projects with an aim to promote economic activity and support infrastructure development.

    PKIC has been accredited with many successful investments including the establishment of Meezan Bank in which it presently holds thirty percent shareholding.

    In line with its vision, PKIC has also recently acquired equity stake in one of its kind tech company in Pakistan, Planet N, which is a technology platform that has investments in over 40 diversified tech startups.

    R.J. Fleming & Co. (DIFC) is the advisory firm owned and associated with R.J. Fleming & Co. Ltd in London, which was founded by Roderick J. Fleming, Chairman of Robert Fleming & Co, one of Britain’s oldest Merchant Banks.

    Robert Fleming & Co. was sold in 2000 to Chase Manhattan (now JP Morgan), and was the pioneer of investment trusts in Scotland in the 1800s and through joint ventures with T Rowe Price in America (“T Rowe Price Fleming”); Jardine Matheson in Asia (“Jardine Fleming”); and Berenberg Group in Europe (“Fleming Berenberg Gossler”), became one of the largest and most recognizable international asset managers at the time. R. J. Fleming & Co (DIFC) Ltd today operates as an independent, discrete and trusted advisor to institutions and family office principals on regional, international and cross border transactions, debt and equity investments.

  • Engro Corporation establishes subsidiary in UAE

    Engro Corporation establishes subsidiary in UAE

    KARACHI: Engro Corporation, Pakistan’s premier business conglomerate, has commenced office operations of its wholly owned subsidiary, Engro Eximp FZE, in the Jebel Ali Free Zone, Emirate of Dubai.

    Engro Eximp FZE will explore potential trading opportunities in the energy, fertilizers, petrochemicals and food & agriculture sectors.

    Ghias Khan, President & CEO of Engro Corporation said: “With a vision to expand the Group’s footprint outside Pakistan, we have opened our trading company in Dubai. Through its trading activities, Engro Eximp FZE will aim to create more export engines for sustainable economic growth.”

    He added that this business will help leverage the enormous supply potential of Pakistan to tap the rising GCC demand.

    The Group’s strategic partnerships and global alliances provide Engro Eximp FZE the foundation to grow and establish its brand internationally.

    READ MORE: Engro Polymer becomes affiliate member of WEF body

    Engro Polymer & Chemicals (EPCL) has become the first affiliate member from Pakistan to join the World Economic Forum’s (WEF) Global Plastic Action Partnership (GPAP), as part of its sustainability efforts to promote the circular economy and contribute to achieving zero plastics waste.

    READ MORE: Engro Fertilizers highlights food security at Dubai Expo

    Engro Fertilizers, Pakistan’s premier seed-to-harvest solutions provider, hosted an insightful dialogue at Expo 2020 Dubai to highlight the food security situation in the Gulf and the potential partnership opportunities with Pakistan to overcome the regional food security challenges. The panel comprised global agricultural and industry experts including Dr. Abdul Rashid (IFA Laureate), Charles Schneider (International Finance Corporation), Ayman Alwadhy (The Corporate Group, UAE), Wasim Halabi (Foodco National Foodstuff Co PJSC), Fredric Favre (MAS Seeds, France) and Khusrau Nadir Gilani (Engro Fertilizers).

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

    Engro Corporation (PSX: ENGRO) on Thursday announced 19.27 per cent growth in profit after tax for the year 2021. According to financial results submitted to the Pakistan Stock Exchange (PSX), the company has declared profit after tax at Rs52.61 billion for the year 2021 as compared with Rs44.11 billion in the last year.

  • PPL announces Rs31.14 billion half year profit

    PPL announces Rs31.14 billion half year profit

    KARACHI: Pakistan Petroleum Limited (PPL) on Friday announced financial results for the half year ended December 31, 2021. The company announced Rs31.14 billion as net profit for the half year.

    The net profit of the company grew by over 19 per cent when compared with Rs26.11 billion in the same half of the last year.

    Pakistan Petroleum Limited is a Pakistani state-owned petroleum company. The company announced earnings per share at Rs11.44 for the half year ended December 31, 2021 as compared with Rs9.59 in the same period of the last year.

    READ MORE: PPL gets license for large scale mining of Lead, Zinc

    The board of directors of the company at its meeting held on February 25, 2022 approved the financial statements for the half year ended December 31, 2021.

    The board of directors approved an interim cash dividend for the year ending June 30, 2022 of Rs1.50 per share on ordinary shares and Rs1.5 per share on convertible preference shares. The dividend will be distributed to those members whose names appear in the register of members of the company as at the close of business on March 10, 2022.

    READ MORE: PPL posts 18% net profit growth in first quarter

    According to the financial results, the revenue of the company increased to Rs90.42 billion for the half year ended December 31, 2021 as compared with Rs75.81 billion in the same half of the preceding year.

    Operating expenses of the company eased to Rs19.96 billion when compared with Rs22.18 billion.

    Exploration expenses during the half ended December 31, 2021 increased sharply to Rs9.04 billion as compared with Rs3.27 billion in the same half of the last year.

  • Habib Bank posts Rs35.51 billion annual profit

    Habib Bank posts Rs35.51 billion annual profit

    Habib Bank Limited (HBL) held its conference call on Friday to discuss financial performance and provide its future outlook onwards. HBL posted a profit after tax of Rs 35.51 billion (EPS: Rs 23.9) in 2021 as opposed to Rs 30.91 billion (EPS: Rs 21.1) in the same period last year, up by 15 per centYoY. It was the best ever result in the history of HBL.

    Along with the result, the bank announced a final cash dividend of Rs 2.25 per share taking the full payout to Rs 7.5 per share.

    Analysts at KASB Research have an outperform rating on HBL based on Justified P/B with a target price of Rs 175 per share. The stock offers a dividend yield of 7.4 per cent and is currently trading at a one year forward P/Bv of 0.57x.

    READ MORE: Habib Bank declares Rs26.44 billion 9-month profit

    As per the management, three key pillars of mid to long term strategy include accelerating Pakistan’s growth and development, shaping financial industry and improving agriculture sector’s productivity. The bank also aims to step up SMEs, branchless banking and CPEC based infrastructure growth in country.

    The bank’s digital footprint is increasing day by day, the highest in the industry. Konnect accounts are up by 1.3x 7.1 million.

    The bank crossed Rs 100.0 billion in consumer loans. Consumer financing grew by 31 per cent reaching Rs 102.8 billion driven by growth in auto and personal loans.

    READ MORE: Habib Bank, Meezan Bank directed to pay fraud victims

    Home remittances for the bank also increased by 29 per cent YoY in 2021 to USD 2.74 billion and the market share clocked in at 8.8 per cent. The bank aims to take the market share to double digits in 2022.

    Domestic deposits noted a growth of 19 per cent over December 2021 and the banks’ market share improved to 14.4 per cent. Meanwhile, international deposits increased by 16 per cent to USD 1.9 billion. CA crossed Rs 1.0 trillion.

    Domestic advances expanded by 20 per cent over December 2020 to Rs 1.2 trillion and international loans increased by 24 per cent.

    READ MORE: Habib Bank pays penalty of Rs42.2 million to SBP

    Infection ratio clocked in at 5.1 per cent as opposed to 6.3 per cent in December 2020 and the bank’s coverage stood at 104 per cent.

    ROE came at 14.4 per cent and ROA stayed at 0.9 per cent in December 2021.

    The bank intends to expand Islamic banking by adding 30/40 new branches in different new cities taking the tally to 250-260 by December 2022.

  • National Bank under grip of regulatory violations

    National Bank under grip of regulatory violations

    National Bank of Pakistan in a notice sent to Pakistan Stock Exchange (PSX) disclosed that it reached an agreement with US regulators of NBP’s New York branch with fines of $55 million arising due to historical compliance weakness and delays in making compliance related enhancements.

    However, there were no findings of improper transactions or willful conduct as per the notice.

    Latest press release by U.S Department of Financial Services stated: “The National Bank of Pakistan allowed serious compliance deficiencies in its New York branch to persist for years despite repeated regulatory warnings. Foreign banks that enjoy the privilege of operating in New York have an obligation to maintain effective controls, and the Department will continue to promote financial transparency and take action to protect the global financial system when those obligations are not met”.

    READ MORE: US central bank imposes $20.4 million penalty on NBP

    Following examinations conducted by the Department and the Federal Reserve Bank of New York in 2014 and 2015, NBP’s New York branch was found to have inadequate Bank Secrecy/Anti-money compliance programs.

    As a result, enforcement action against NBP was taken in 2016 where NBP agreed to improve compliance deficiencies which later on it failed to do so. As a result, the bank will now be subject to $35 million penalty in addition to certain deliverables for the improvement in its compliance program.

    READ MORE: NBP lends Rs18.8bn in Hascol’s Rs54bn scam

    In addition to the fine by U.S Department of Financial Services, Federal Reserve Board also imposed $20.4million penalty against NBP on anti-money laundering violations totaling penalty to $55million which translates into Rs9.7billion (Rs4.6/share). In 9M2021, the bank has so far reported earnings of Rs25billion.

    Analysts at Topline Securities said that previously HBL also faced a similar fine in 2017 where the U.S regulators initially imposed a penalty of US$630million on HBL on non-compliance of Anti-money laundering laws, which was later revised down to US$225million.

    NBP is also faced with a pending pension liability case with potential liabilities of over Rs70 billion under which the company had filed a review petition in Supreme Court of Pakistan where further judgement is still awaited. The bank due to the aforementioned reason has skipped dividends since 2017, we believe.

  • United Bank posts Rs30.62 billion net profit for 2021

    United Bank posts Rs30.62 billion net profit for 2021

    KARACHI: United Bank Limited (UBL) on Wednesday posted Rs30.62 billion profit after tax for the year ended December 31, 2021, according to financial results submitted to Pakistan Stock Exchange (PSX)

    The bank registered 47 per cent growth in profit after tax for the year under review as compared with Rs20.78 billion in the preceding year.

    The bank announced earnings per share at Rs24.84 for the year ended December 31, 2021 as compared with Rs17.10 in the preceding year.

    READ MORE: UBL gets DD approval to acquire Telenor Microfinance Bank

    Analysts at Arif Habib Limited said that the earnings jumped mainly on the back of reversals in provisioning and a surge in net fee income (NFI).

    The bank announced a dividend of Rs6.00 per share for the quarter taking total payout to PKR 18.00 per share for the year ended December 31, 2021.

    Net Interest Income (NII) of the bank settled at Rs74.7bn during the year under review, decreasing 3 per cent Year on Year YoY/ 2 per cent Quarter on Quarter (QoQ) attributable to significant rate hikes during the previous year leading to sharp increase in interest expense.

    READ MORE: UBL declares 42% growth in net profit in nine months

    NFI depicted a rise of 29 per cent YoY mainly due to massive jump in capital gains (469 per cent YoY) followed by higher dividend income (80 per cent YoY) and foreign exchange income (8 per cent YoY). On a sequential basis, NFI was up 19 per cent QoQ mainly due to a 23 per cent QoQ jump in Fee income.

    The bank booked a net reversal of Rs1.5 billion in the year ended December 31, 2021 compared to huge provisioning of Rs17.2 billion during the preceding year. This could be on the back of stronger economic activity and improved asset quality helping the bank to book reversals against Non-Performing Loans (NPLs).

    The bank’s operating expenses rose 9 per cent YoY/16 per cent QoQ. Cost/Income clocked-in at 49 per cent during the year under review compared to 46 per cent same period last year.

    Effective tax rate was set at 41 per cent during the year ended December 31, 2021 compared to 39 per cent in the preceding year.

  • OGDCL declares over 63% net profit for 1HFY22

    OGDCL declares over 63% net profit for 1HFY22

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced financial results for the half year ended December 31, 2021.

    The company announced over 63 per cent growth in net profit to Rs69 billion for the first half (July – December) 2021/2022 as compared with Rs42.22 billion in the corresponding period of the last fiscal year.

    READ MORE: OGDCL declares Rs33.63 billion net profit in first quarter

    The company announced earnings per share (EPS) at Rs16.02 for the half year ended December 31, 2021 as compared with Rs9.82 announced in the corresponding half of the last year.

    The board of directors of the company in their meeting held on February 23, 2022 approved an interim cash dividend for the quarter ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim dividend already paid at Rs1.75 per shre i.e. 17.50 per cent.

    READ MORE: OGDCL discovers huge gas deposits in Balochistan

    According to the financial results, the sales of the company registered a massive increase to Rs151.16 billion for the first half of the fiscal year 2021/2022 as compared with Rs110.97 billion in the corresponding half of the last fiscal year.

    Operating expenses of the company were flat at Rs34.37 billion in July – December 2021/2022 as compared with Rs33.3 billion in the same period of the last fiscal year.

    READ MORE: OGDCL announces gas discovery in KPK

    OGDCL paid an amount of Rs17 billion as royalty during the first half of the current fiscal year as compared with Rs12.9 billion in the corresponding half of the last fiscal year.