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Category: Corporate

Corporate sector insights covering business strategies, governance, finance, taxation, and regulatory developments shaping company performance.

  • PTCL registers eight-year high revenue growth

    PTCL registers eight-year high revenue growth

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), posted seven per cent growth in its revenues for the year 2021, which is eight-year high or the highest revenue growth since 2013.

    The revenue growth may be attributed to a robust commercial strategy which cements its market standing.

    According to a statement issued on Friday, the company announced its annual financial results for the year 2021 at its Board of Directors’ meeting on February 10, 2022.

    READ MORE: PTCL Group wins GDEIB award in five categories

    PTCL Group

    PTCL Group posted a revenue of Rs 138 billion in the year 2021 which is 6.3% higher as compared to 2020.

    PTCL continued its growth trajectory by posting 7% YoY revenue growth which is the highest since 2013.

    PTML (Ufone) also posted a revenue growth of 4.3% despite stiff competition in the market.

    U Bank continued its growth momentum and has achieved 8.4% growth in revenue.

    PTCL Group has posted a net profit of Rs 2.6 billion.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    PTCL:

    PTCL continued its strong performance throughout 2021. PTCL’s revenue of Rs 77 billion for the year 2021 is 7% higher than 2020, mainly driven by Broadband and Corporate & Wholesale business segments.

    PTCL registered highest Fixed broadband Sales and Net Adds in 2021 since 2015, which allowed PTCL to grow in the broadband business segment.

    PTCL is the fastest growing Fiber-To-The-Home (FTTH) operator with highest Net adds within FTTH market in 2021.

    The company has posted operating profit of Rs 4.2 billion, which is higher by 21% compared to 2020.

    Net profit of Rs 6.9 billion is higher by 14% as compared to last year.

    The company is continuously upgrading its existing infrastructure and network, besides expanding FTTH across the country to offer seamless connectivity for greater customer experience. Prompt deployment of FTTH and strong performance in Corporate and Wholesale segments are the cornerstone in PTCL’s topline growth, which along with focus on cost optimization program, has significantly increased the company’s profitability.

    READ MORE: PTCL, Dell to launch Azure Services in Pakistan

    PTCL Consumer Business:

    During 2021, the company’s Fixed Broadband business grew by 11.7% YoY, whereas PTCL IPTV segment also grew by 13% YoY. Within broadband business, PTCL Flash Fiber, the company’s groundbreaking FTTH service, showed a tremendous growth of 61.5%, whereas PTCL CharJi /Wireless Broadband Segment grew by 16.5%. Voice revenue stream has declined on account of lower voice traffic and continued conversion of customers to Over-The-Top (OTT) services.

    Business Services:

    Business services segment continued its momentum sustaining market leadership in IP Bandwidth, Cloud, Data Center, and other ICT services segments. PTCL’s Enterprise business grew by 10% as compared to last year, while Carrier and Wholesale business continued its growth momentum and achieved 9% overall revenue growth. Similarly, international business growth was recorded at 4%.

    Being the national telecom carrier and connectivity backbone in Pakistan, PTCL Group strives to provide innovative solutions to accelerate growth for a ‘Digital Pakistan’ through robust telecommunication infrastructure and a diverse portfolio of services with enhanced customer experience.

    PTML – Ufone:

    READ MORE: Ufone signs Rs21 billion agreement for 4G spectrum

    Ufone’s financial year 2021 ended on a high note despite challenging operating environment

    Ufone revenues grew by 4.3% as compared to 2020 mainly driven by growth in data services

    Ufone acquired additional 9 MHz 4G spectrum in the 1800 MHz Band in NGMS spectrum auction in September 2021, fulfilling its commitment to provide enhanced customer experience through quality services across Pakistan.

    Post spectrum auction, significant network modernization activity was carried out in Q4 2021 that has allowed Ufone to significantly improve its share of the 4G net adds within the industry.

    PTCL Group is playing a key role in supporting Universal Service Fund’s (USF) efforts for the development of telecommunication services in un-served and under-served areas of the country. This year, PTCL was awarded seven USF optical fiber projects for far flung areas of Punjab, KPK and Sindh provinces. Under these projects, PTCL will deploy a total of 4,690 KM optical fiber. Ufone was awarded five USF projects under the Broadband for Sustainable Development (BSD) umbrella during 2021 for the unserved and under-served areas of Baluchistan which involve deployment and network upgrade of 205 BTS sites.

    UBank:

    UBank, the microfinance and branchless banking subsidiary of PTCL, continued its growth trajectory and has achieved 8.4% growth in its revenue over last year by increasing its advances portfolio. The balance sheet footing of the bank crossed the Rs 100 billion mark as the bank diversified its funding streams and asset classes while ensuring positive bottom-line impact.

    Major strategic initiatives undertaken by the bank include venturing into the low-cost housing loans, international remittance, and the launch of Islamic Banking. The bank intends to invest in state-of-the-art technology to become a leading digital banking player. With the core mission of microfinance at its heart, the business model of the bank is evolving to capture new segments and customer classes to include more of Pakistan into the banking net and further its ambition of financial and social inclusion.

    Corporate Social Responsibility (CSR):

    During 2021, PTCL ran the second cohort of its flagship internship program ‘Justuju’ for Persons with Disabilities (PWDs) in collaboration with ‘Network of Organizations Working with Persons with Disabilities, Pakistan’ (NOWPDP).

    PTCL provided internet connectivity to 11 campuses of the Pehli Kiran Schools Islamabad in an effort to support the Education Sector in Pakistan. PTCL Razakaar and the company’s employee volunteer force undertook a comprehensive clothes donation drive in partnership with Akhuwat Clothes Bank for deserving communities across Pakistan.

    Shaukat Khanum Memorial Cancer Hospital and Research Centre (SKMCH&RC) recognized the PTCL Razakaar Trust for its generous donation towards augmenting COVID-19 testing facilities of the center during the peak of the pandemic in 2020.

  • PSO posts massive growth of 245% in six months

    PSO posts massive growth of 245% in six months

    KARACHI: Pakistan State Oil Company Limited (PSX: PSO) has declared massive growth of 245 per cent in net profit for the six months ended December 31, 2021.

    According to financial results submitted to the Pakistan Stock Exchange (PSX) on Friday, the company declared Rs31.92 as profit after tax for the six month period ended December 31, 2021 as compared with Rs9.26 billion in the same half of the last year.

    READ MORE: PSO registers 120% growth in quarterly profits

    The company declared Rs68.20 as earnings per share (EPS) for the period under review as compared with EPS of Rs19.93 in the same period of the last year.

    The board of management of the company in the meeting held on Friday and recommended a ‘nil’ dividend.

    READ MORE: PSO’s prudent planning helps considerable savings

    Net sales of the company surged to Rs998.77 billion for the half year ended December 31, 2021 as compared with Rs580.98 billion in the corresponding half of the last year.

    The gross profit of the company was at Rs50.16 billion as compared with Rs21.38 billion.

    Administrative costs increased to Rs1.81 billion during the six month period ended December 31, 2021 as compared with Rs1.72 billion in the same period of the last year.

    READ MORE: PSO posts highest ever annual net profit of Rs29.1bn

  • Fire incidents at two facilities of Service Industries

    Fire incidents at two facilities of Service Industries

    KARACHI: Service Industries Limited (PSX: SRVI) on Friday reported fire incidents at a factory located in Muridke and godowns in Lahore.

    In a communication sent to Pakistan Stock Exchange (PSX), Service Industries Limited stated: “A fire broke out at the factory premises of the company at Muridke on February 09, 2022 which was brought under control. It, however, has caused damage to the raw material store and some finished goods inventory. There has been no damage to the production facilities.

    “The insurance companies are assessing the extent of loss caused by the fire break out. Since the above assets are fully insured, the management does not foresee any significant impact on the profitability of the company.”

    The company reported another fire incident in Lahore.

    “Further, a fire incident has also occurred at one of the rented finished goods godowns of the company located at Multan Road, Lahore on February 10, 2022 which was also brought under control. It however has caused damage to the finished goods inventory.

    “The company’s finished goods inventories are fully insured and the loss is being assessed by insurance companies. Accordingly, the management does not foresee any significant impact on the profitability of the company.

  • K-Electric to raise Rs12 billion through Sukuk

    K-Electric to raise Rs12 billion through Sukuk

    KARACHI: K-Electric Limited, the leading power generation and supply company, has announced plans to raise Rs12 billion through the issuance of Sukuk.

    (more…)
  • UBL gets DD approval to acquire Telenor Microfinance Bank

    UBL gets DD approval to acquire Telenor Microfinance Bank

    KARACHI: United Bank Limited (UBL) has been granted regulatory approval to commence due diligence (DD) of Telenor Microfinance Bank Limited.

    In a communication shared with the Pakistan Stock Exchange (PSX) on Tuesday, UBL said that the State Bank of Pakistan (SBP) had granted in-principle approval to UBL to commence the due diligence of Telenor Microfinance Bank Limited (TMB) for proposed acquisition of 55 per cent sponsor shares in TMB, currency held by Telenor Pakistan BV (operating under the Easypaisa brand name), subject to the compliance with the applicable laws, rules, regulations.

    It was second approval granted by the SBP in less than two weeks to UBL to initiate due diligence in two different acquisitions.

    On January 26, 2022, the bank informed the PSX that that SBP had granted in-principle approval to UBL to commence the due diligence of Samba Bank Limited in respect of acquisition of 84.51 per cent shareholding of SBL, currently held by Saudi National Bank.

  • Pakistan Oilfields declares Rs10.92 billion half year profit

    Pakistan Oilfields declares Rs10.92 billion half year profit

    KARACHI: Pakistan Oilfields Limited on Friday announced 64 per cent growth in its net profit to Rs10.92 billion during first half (July – December) 2021/2022.

    The company’s net profit for the same half of the last year was Rs6.5 billion.

    The company declared earnings per share (EPS) at Rs38.48 for the half year ended December 31, 2021 as compared with EPS Rs23.42.

    READ MORE: Pakistan Oilfields announces large oil, gas discovery in Kohat

    The board of directors of Pakistan Oilfields met on Friday February 04, 2022 to approve the financial results of the company for six months ended December 31, 2021.

    The board approved an interim cash dividend for the half year December 31, 2021 at Rs20 per share i.e. 200 per cent.

    Net sales in 2QFY22 climbed up by 44 per cent YoY, clocking-in at Rs12,610 million against Rs8,773 million during SPLY as a result of  i) 79 per cent YoY surge in realized oil prices and ii) 8 per cent YoY Pak Rupee depreciation against USD.

    Meanwhile, oil and gas production plummeted by 10.2 per cent and 9.7 per cent YoY, respectively. Whereas, topline in 1HFY22 clocked-in at PKR 23,687 million, witnessing a growth of 35 per cent YoY given a 71 per cent YoY hike in average realized oil prices.

    The exploration costs ascended by three times YoY in 2QFY22, arriving at PKR 108 million compared to PKR 34 million in SPLY, given higher geological and geophysical cost during the period. On a cumulative basis, exploration costs during 1HFY22 reached PKR 559 million, up by 5x YoY owed to higher seismic activity.

    Other income depicted a massive jump of 8x YoY, reaching PKR 2,018 million during 2QFY22 in contrast to PKR 242 million during the same period last year. This massive increase comes on the back of exchange gain on foreign currency tagged with higher income from bank saving accounts, deposits and investments. Similarly, other income during 1HFY22 comes out to be PKR 4,718 million, up 8x YoY.

    The company booked effective taxation at 36 per cent in 2QFY22 vis-à-vis 39 per cent in 2QFY21.

  • Attock Petroleum declares 208% growth in six-month profit

    Attock Petroleum declares 208% growth in six-month profit

    KARACHI: Attock Petroleum Limited on Friday declared 208 per cent growth in profit after tax for the six months period ended December 31, 2021.

    The company announced Rs6.61 billion as profit after tax for the period under review as compared with Rs2.41 billion profit after tax for the same period of the last year.

    Attock Petroleum Limited announced earnings per share of Rs66.40 for the six months period ended December 31, 2021 as compared with EPS of Rs21.56 in the same period of the last year.

    The board of directors of Attock Petroleum met on Friday February 04, 2022 and announced an interim cash dividend for the six month period ended December 31, 2021 at Rs15 per share i.e. 150 per cent.

    The board however approved no bonus share, right share or any other entitlement/corporate action.

    The company declared profit before tax of Rs9.37 billion for the first half (July – December) 2021 as compared with Rs2.99 billion in the same period of the last year.

    The net sales of the company increased sharply to Rs154.27 billion during the first half of the current fiscal year as compared with Rs89.97 billion in the corresponding half of the last fiscal year.

    Operating expenses of the company also surged to Rs3.4 billion during the period under review as compared with Rs1.79 billion in the same period of the last fiscal year.

  • Jazz recognized for driving change beyond workplace

    Jazz recognized for driving change beyond workplace

    KARACHI: To recognize the commitment in improving the lives and livelihood of women through technology, the Overseas Investors Chamber of Commerce and Industry (OICCI) awarded Jazz with the ‘Driving Change Beyond Workplace’ award at the Women Empowerment Awards 2021 held on Thursday.

    Abdul Aleem, Secretary General, OICCI presented the award to Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: OICCI organizes Women Empowerment Awards

    Jazz is dedicated to enhancing diversity and women’s empowerment within its business model and focuses on uplifting women in the society through the power of the internet.

    Female specific products and services are designed to help address many of the wider gender inequalities by digitally enabling them to access health, financial, and other life-enhancing services.

    READ MORE: Jazz Digital Park inaugurated in Islamabad

    The company’s digital financial service, JazzCash, under the GSMA Connected Women Commitment Initiative, has committed to increase the proportion of women in their mobile money customer base by 2023. In addition, all its sustainability programs ensure 50% women participation ranging from urban to rural areas so women can lead the change.

    “Inclusivity being at the heart of all our policies, we have always paved the way for gender equality within the organization as well as the society at large. This recognition further validates our holistic approach towards empowering women internally and externally and renews our vigor as we move forward in our journey of creating a digitally inclusive ecosystem in Pakistan,” said Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: Jazz’s investment in Pakistan crosses $10 billion

    Jazz is an equal opportunity employer and is creating and nurturing an inclusive and empowering culture. It’s one of the first telecom companies with a high female representation in its executive leadership. Not only does the company promote gender diversity in its work environment, it also has programs focused entirely on attracting and facilitating the female gender including the most recent ‘She’s Back – Women Returnship Program’ for women looking to return to work following a career break. Jazz is among the few early adopters in Pakistan to fully commit itself to the Women Empowerment Principles, introduced by UN Women and the UN Global Compact that focus on steering corporates to promote gender equality and women empowerment.

    Champions of Change Coalition, a globally recognized, high-profile coalition working to achieve change on gender equality issues recently welcomed Jazz CEO Aamir Ibrahim as the coalition’s member aiming to accelerate progress in creating more inclusive and progressive organizations in Pakistan.

    READ MORE: PTA renews Jazz license for $449.2 million

  • Bank Alfalah declares 33.4% surge in annual profit

    Bank Alfalah declares 33.4% surge in annual profit

    KARACHI: Bank Alfalah Limited on Wednesday declared 33.4 per cent surge in net profit for the year 2021.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank announced Rs14.46 billion as consolidated profit after tax earnings for the year ended December 31, 2021 as compared with Rs10.84 billion in the preceding year.

    READ MORE: Bank Alfalah tops in house financing under MPMG

    Bank Alfalah declared earnings per share at Rs8.12 for the year under review as compared with EPS of Rs6.10 during the preceding year.

    The Board of Directors of the bank met on February 02, 2022 at Dubai, UAE and recommended final cash dividend for the year ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim cash dividend already paid at Rs2 per share i.e. 20 per cent.

    READ MORE: Bank Alfalah enables QR option for retail payment

    The board has not approved any bonus share, right share or any other entitlement / corporate action.

    The board of directors authorized the bank to acquire 521,739 additional ordinary shares of Rs10 each (representing 1.3 per cent of the share capital) of its subsidiary, Alfalah CLSA Securities (Pvt) Limited from minority shareholders of the company. As a result, the total shareholding of the bank in the company will stand at 24,999,912 ordinary shares. Such purchase shall be subject to obtaining of all necessary corporate and regulatory approvals and completion of related formalities.

    READ MORE: Bank Alfalah declares Rs10.48 billion after tax profit

    According to the results, the net mark-up / interest income of the bank rose to Rs46.04 billion for the year ended December 31, 2021 as compared with Rs44.69 billion in the preceding year.

    Total non-mark-up/interest income of the bank grew to Rs17.23 billion in the year 2021 as compared with Rs13.54 billion in the preceding year.

    READ MORE: Bank Alfalah announces 21% growth in half year profit

    Operating expenses of the bank increased to Rs36.54 billion during the year under review as compared with Rs31.62 billion in the preceding year.

  • Lucky Cement announces Rs17.15 billion earnings for first half

    Lucky Cement announces Rs17.15 billion earnings for first half

    KARACHI: Lucky Cement Limited on Friday announced consolidated earnings of Rs17.15 billion for the first half ended December 31, 2021.

    Out of which Rs4.01 billion is attributable to non-controlling interests for the first half ended December 31, 2021.

    This translates into earnings per share (EPS) of PKR 40.66 / share as compared to PKR 32.05 / share reported during the same period last year.

    READ MORE: Lucky Cement wins corporate excellence award

    Further, on a consolidated basis, the Company achieved gross turnover of Rs154.50 billion which is 24.9 per cent higher as compared to the same period last year’s turnover of Rs123.72 billion.

    During the HY 2021-22 under review, the company’s consolidated net profit (attributable to owners’ of the Holding Company) increased by 26.8 per cent as compared to the same period last year.

    The increase in net profit was mainly attributable to the stellar performance of Company’s Chemicals business.

    Apart from the one-off unrealized accounting gain recognized on acquisition of controlling shares in NutriCo Pakistan amounting to Rs1.847 billion, the Chemical business achieved considerable improvement in net profitability on account of impressive growth in its Polyester, Pharma and Animal Health business segments.

    In the automobile business, Lucky Motor Corporation introduced Kia Stonic in its line up as well as started commercial production of Samsung branded mobile phones during the half year under review.

    Whereas, profitability of Company’s overseas operations increased mainly due to improvement in sales volume and operations of Company’s Joint Venture Greenfield cement plant in Samawah, Iraq, which achieved its COD in March 2021.

    On unconsolidated basis Company’s overall sales volumes posted a decline of 5.9 per cent to reach 4.70 million tons during HY 2021-22. Company’s local sales volumes remained almost in line with the corresponding period last year i.e. 3.63 million tons in 1HY 2021-22 versus 3.66 million tons during the same period last year. The export sales volumes of the Company declined by 19.7 per cent to 1.07 million tons as compared to 1.34 million tons during the same period last year.

    The decline in overall dispatches is mainly attributed to decline in export volumes on the back of volatily in coal prices and freight costs internationally, which have adversely impacted the viability of cement exports from Pakistan.

    Further, with regards to Company’s unconsolidated financial performance, the gross sales revenue increased by 20.2 per cent to PKR 50.61 billion compared to PKR 42.11 billion reported during the same period last year. The per ton cost of sales also increased mainly due to increase in coal prices along with other input costs. Lucky Cement recorded net profit after tax of PKR 5.77 billion showing growth of 27.2 per cent. Similarly, the standalone EPS of the Company is PKR 17.86 / share as compared to the same period last year’s reported EPS of PKR 14.04 / share.

    The Company reported progress on its brownfield plant expansion activities in KPK with project completion targeted for December 2022.

    The construction activity for setting up a 660 MW super critical, lignite coal-based power plant is near to completion and it has been synchronized with the national grid in November 2021. The Project is currently under testing phase and it is targeted to achieve COD in February 2022.

    Lucky Cement continued its patronage on Education & Scholarship, Women Empowerment, Health, Environment Conservation and reassured its commitment for the development of society and the communities in which it operates.

    While the previous waves of Covid-19 receded in the past, the pandemic continues to resurge with different variants of the virus. Even with the persistent drive of the Government on compliance of SOPs and getting the masses vaccinated, prudent expectation is that volatile infection rates will continue for the time being. We, however expect that the economy will continue to show resilience against the adverse impacts of such pandemic.

    On the other hand, the ongoing inflationary trend in commodities globally has resulted in an increase in cost of inputs, such as coal, diesel, furnace oil and freight charges, which are a major cost component of cement. Currency devaluation has further impacted and increased these costs.  Due to increase in costs of other construction materials, the local demand will remain flat. At the same time, cement prices have only partially offset the increase in input costs faced by the manufacturers.

    Construction of dams, hydropower projects, real estate development and low cost housing schemes will help to maintain the demand of cement in the medium to long term.