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Category: Corporate

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

  • Lucky Cement wins corporate excellence award

    Lucky Cement wins corporate excellence award

    KARACHI: Lucky Cement Limited has won the Management Association of Pakistan’s Corporate Excellence Award in the Cement Sector category.

    Noman Hasan, Executive Director of Lucky Cement Limited received the award at the 36th MAP Annual Corporate Excellence Award Ceremony held at a local hotel yesterday.

    The Corporate Excellence Awards was instituted by MAP in 1982 with the sole aim to recognize and honor companies showing outstanding performance and demonstrating progress and enlightened management practices.

    Noman Hasan, Executive Director, Lucky Cement Limited, remarked, “We are pleased to accept this recognition and would like to thank all our internal and external stakeholders for their confidence and continuous support throughout the years.”

    He further added: “Our dynamic human capital and efficient corporate governance framework aligned to our vision of ensuring a sustainable leadership position in Pakistan has helped us to achieve remarkable results in every domain of our business. Being an industry leader, we are determined to continue setting new benchmarks and create an environment of growth and opportunities.”

    Lucky Cement received the award based on having the best corporate practices and governance in the cement sector. The primary criteria for this award emanates from best Corporate and Management practices reflected by Leadership, Corporate Governance, Customer and Market Focus, HR, Strategic Planning and Communication, Social Responsibility, Risk Management, IT Infrastructure, Service Delivery and Security.

    Lucky Cement starts commercial operation in Iraq
  • KE’s profit up by 161% on high tariff adjustment

    KE’s profit up by 161% on high tariff adjustment

    KARACHI: K-Electric Limited (KE), the power generating and supply company, on Thursday announced massive 161 per cent growth in net profit for quarter ended September 30, 2021, mainly surge in revenue in the shape of tariff adjustment.

    The profit after tax of the KE grew by 161 per cent to Rs2.9 billion for the quarter ended September 30, 2021 as compared with Rs1.11 billion in the same quarter of the last year.

    The company announced Rs0.11 as earnings per share (EPS) for the quarter under review as compared with Rs0.04.

    The revenue of KE exhibited sharp growth of 33 per cent to Rs114.14 billion for the quarter ended September 30, 2021 as compared with Rs85.55 billion in the same quarter of the last year.

    The sales of energy grew by 27 per cent to Rs86.92 billion for the quarter under review as compared with Rs68.40 billion in the same quarter of the last year.

    In the head of tariff adjustment, the revenue of the company recorded 58.72 per cent increase to Rs27.22 billion for the quarter ended September 30, 2021 as compared with Rs17.15 billion in the same quarter of the last year.

    Cost of sale grew by 36 per cent to Rs97.49 billion as against Rs71.68 billion.

    Operating expenses of KE recorded a significant increase to Rs1.81 billion for the quarter ended September 30, 2021 as compared with Rs338 million in the same quarter of the last year.

    PSO registers 120% growth in quarterly profits
  • PSO registers 120% growth in quarterly profits

    PSO registers 120% growth in quarterly profits

    KARACHI: Pakistan State Oil (PSO) on Thursday announced a massive jump in its quarterly net profit by over 120 per cent for the period ended September 30, 2021.

    According to consolidated results, the profit of the company surged to Rs11.53 billion for the quarter ended September 30, 2021, as compared with Rs5.22 billion in the same quarter of the last year.

    PSO announced Rs24.93 as earning per share for the quarter ended September 30, 2021 as compared with Rs11.07 in the same quarter of the last year.

    The company in its board of management meeting held on October 28, 2021 approved the results and recommended no dividend for the period.

    The company posted a gross profit of Rs 22.1 billion with gross margins set at 4.80 per cent in the first quarter of 2021/2022 compared to gross profit of Rs 11.5 billion (4.09 per cent gross margins) in the prior year.

    Analysts view noteworthy changes in ex-refinery prices that resulted in inventory gains of around Rs 7 billion in 1QFY22 compared to inventory gains of Rs 1.5 billion in same period last year.

    Other operating income decreased by 87 per cent QoQ to Rs 1,786 million in 1QFY22. We believe, absence of Late Payment Surcharge (LPS) resulted in decline in other income.

    Meanwhile, finance costs nosedived by 92 per cent QoQ and 27 per cent YoY to Rs 626mn which is owing to lower reliance on short term borrowings and lower interest rates, we view.

    The company recorded effective taxation at 32.6 per cent in 1QFY22 compared to 33.0 per cent in 1QFY21.

    PSO’s prudent planning helps considerable savings
  • PIA incurs loss of Rs42.72 billion in nine months

    PIA incurs loss of Rs42.72 billion in nine months

    KARACHI: Pakistan International Airlines, the national flag carrier, on Wednesday declared a loss of Rs42.72 billion during the first nine months (January – September) of 2021.

    The losses of the national flag carrier were over Rs40 billion in the same period of the last year.

    The board of directors of PIA in its meeting on October 27, 2021, approved the financial results for the period ended September 30, 2021.

    The board has not approved any cash dividend, bonus shares, or right shares for the period.

    The revenue of the airline significantly declined to Rs49.36 billion during January – September 2021 as compared with Rs74.36 billion in the same period of the last year.

    On account of aircraft fuel, the airline has spent Rs13.44 billion during the period under review as compared with Rs18.08 billion in the corresponding period of the last year.

    Administrative expenses of PIA reduced to Rs3.97 billion during the first nine months of the current year as compared with Rs4.53 billion in the same period of the last year.

    The exchange losses of the company were at Rs5.18 billion for the period under review as compared with Rs7.57 billion.

    PIA transports 5.9 million new batch of COVID vaccines
  • PSX declares Rs151 million as profit for first quarter

    PSX declares Rs151 million as profit for first quarter

    KARACHI: Pakistan Stock Exchange (PSX) on Wednesday declared Rs151 million as net profit for the first quarter ended September 30, 2021.

    The board of directors of the PSX in its meeting held on October 27, 2021 approved the first quarterly financial statements of the exchange for the period ended September 30, 2021.

    The board has not recommended any cash dividend, bonus shares, or right shares.

    The PSX revenue increased to Rs380.62 million for the quarter ended September 30, 2021 as compared with Rs318 million in the same quarter of the last year.

    Under the head of revenue, the listing fee increased to Rs166.64 million as compared with Rs133.59 million. Income from exchange operation surged to Rs180.33 million as against Rs154.61 million. Rental income from investment property grew to Rs13.09 million as compared with Rs12.06 million.

    Administrative expenses of the exchange recorded increase to Rs356.85 million during the first quarter ended September 30, 2021 as compared with Rs287.03 million in the same quarter of the last year.

    Share of profit from associates recorded a growth of Rs157.14 million as compared with Rs128.81 million.

    Basic and diluted earnings per share were remained unchanged at Rs0.19.

    PSX worst performing market in third quarter
  • Philip Morris declares 39% decline in quarterly profit

    Philip Morris declares 39% decline in quarterly profit

    KARACHI: Philip Morris (Pakistan) Limited on Tuesday announced a 39 per cent decline in its profit after tax for the quarter ended September 30, 2021.

    According to financial results shared with the Pakistan Stock Exchange (PSX), the company declared a profit of Rs351 million for the quarter ended September 30, 2021 as compared with the profit of Rs575.56 million in the same quarter of the last year.

    The board of directors of Philip Morris (Pakistan) Limited at its meeting held on October 26, 2021 approved the quarterly financial statements of the company for the quarter ended September 30, 2021.

    The company declared a net profit of Rs2.07 billion for the nine months period ended September 30, 2021 as compared with Rs1.83 billion in the same period of the last year.

    During the nine months ended September 30, 2021, the company’s net turnover stood at Rs12,789 million reflecting an increase of 7.5 per cent versus the same period last year.

    During the period, the Company’s contribution to the National Exchequer, in the form of excise duty, sales tax and other government levies, stood at Rs20,449 million (higher by 17.4 per cent compared to the same period last year) reflecting 60.9 per cent of nine months gross turnover.

    Unaltered excise rate on cigarettes in June 2021 during Federal Budget 2021/2022 is supporting Government Revenues and added to FBRs record revenue collection.

    During the first Quarter ended September 30, 2021 of the ongoing fiscal year 2021/22, the Company’s contribution to the National Exchequer (July’21-Sep’21) in the form of excise duty, sales tax and other Government levies, stood at Rs6,014 million (higher by 22.1 per cent versus prior period).

    No change in excise rates also led to consumer price stability of the tax paying cigarette brands, however, the price gap between tax paid and non-tax paid brands remains very significant and non-tax paid brands continue to sell lower than the minimum price for the purposes of levy and collection of federal excise duty of i.e. Rs63 per pack.

    We are of the view that Pakistan’s economy which started to gain momentum in the first half of the calendar year, is now facing serious challenges.

    The continuing rise of commodity and fuel prices internationally accompanied by a devaluation of the PKR v/s US$ has pushed up the inflation rate.

    The country’s economic challenges, therefore, need greater focus by the Government as it has already eroded the purchasing power of the common man.

    The management is concerned that the current volatile domestic and international economic environment might have serious consequences for the Company’s operations especially, as it may divert the cigarette consumer to cheaper illicit brands to offset the decline in their income.

    Philip Morris declares 37% growth in half year net profit
  • Indus Motors posts 195% growth in net profit to Rs5.42bn

    Indus Motors posts 195% growth in net profit to Rs5.42bn

    KARACHI: Indus Motor Company Limited has reported a remarkable 195% increase in net profit, reaching Rs5.42 billion for the quarter ended September 30, 2021, compared to Rs1.84 billion during the same period last year.

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  • Unilever Pakistan declares 55% growth in quarterly profit

    Unilever Pakistan declares 55% growth in quarterly profit

    KARACHI: Unilever Pakistan Foods Limited on Monday announced a sharp growth of 55 per cent in net profit for the quarter ended September 30, 2021. The company made a profit of Rs1.19 billion for the quarter July – September 2021 as compared with Rs767 million in the same quarter of the last year.

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  • PPL posts 18% net profit growth in first quarter

    PPL posts 18% net profit growth in first quarter

    KARACHI: Pakistan Petroleum Limited (PPL) has announced 18 per cent growth in net profit of the first quarter ended September 30, 2021.

    The company announced profit after tax of Rs16.86 billion during the first quarter (July – September) of the current fiscal year as compared with Rs14.32 billion in the corresponding period of the last fiscal year.

    PPL announced earnings per share at Rs6.2 for the quarter under review as compared with Rs5.26 EPS in the same quarter of the last year.

    The board of directors of the company at its meeting held on Monday approved the unconsolidated and consolidated financial statements for the first quarter ended September 30, 2021.

    The company declared revenue growth to Rs43.59 billion during the first quarter of the current fiscal year as compared with Rs39.32 billion in the same quarter of the last fiscal year.

    Operating expenses of the company also grew to Rs10.43 billion as compared with Rs9.4 billion.

    Under the head of royalties and other levies, the company paid an amount of Rs6.43 billion during the first quarter of the current fiscal year as compared with Rs5.95 billion in the same period of the last year.

    The exploration expenses of the company increased to Rs4.86 billion during the quarter of July – September 2021 as compared with 2.29 billion in the same period of the last year.

    Pakistan Petroleum discovers hydrocarbons in Sindh
  • Engro Fertilizers awarded for largest taxpayer

    Engro Fertilizers awarded for largest taxpayer

    Engro Fertilizers has been recognized as the largest tax paying company in the fertilizer sector. Engro Fertilizer is Pakistan’s premier seed-to-harvest solutions provider.

    Engro Fertilizers has been recognized as the largest tax paying company in a ceremony held at the Aiwan-e-Sadr.

    Nadir Qureshi, CEO of Engro Fertilizers, received the award from the Honorable President Dr. Arif Alvi, who was the chief guest on this occasion.

    According to Nadir Qureshi, “For over 50 years, Engro Fertilizers has remained committed to serving the farmers of Pakistan with world-class products and solutions. Our contributions to the community and the national exchequer are a testament to our philosophy of doing good while doing well. We fully support the Government’s vision of transforming the agricultural landscape and improving the well-being of the farmers of Pakistan.” 

    He added: “the fertilizer industry in Pakistan operates at the highest level of transparency, with all companies listed and contributing high tax revenues to the Government. Our sector is the only sector whose contributions in taxes to the national exchequer are almost entirely equal to the income provided to the shareholders of fertilizer companies. This makes the Government of Pakistan an equal partner in the earnings of the fertilizer sector.”

    Qureshi appreciated the Government for enabling the domestic fertilizer sector to provide adequate and affordable supply of urea to farmers in Pakistan, despite the steep rise in international prices. Continued support from the Government will ensure farmer well-being and even higher tax contributions from the fertilizer industry. He stated that the fertilizer industry of Pakistan is internationally competitive and can thrive in a fully deregulated environment, even without any gas subsidies.

    The local industry has always provided farmers in Pakistan with urea at prices below international and is currently delivering a discount of circa Rs 5000/bag compared to the global market.

    Through import substitution, the fertilizer sector will contribute more than $3 billion towards reducing the trade deficit in 2021. As a result of the significantly lower prices, the local fertilizer industry will save farmers from an additional burden of Rs 363 billion in 2021 as well.

    The ceremony was organized by the Rawalpindi Chamber of Commerce and Industry (RCCI) and Federal Board of Revenue (FBR) to appreciate the contribution of leading taxpayers and business institutions in the development of economy, while also highlighting the government’s efforts to facilitate the taxpayers.

    The event was also attended by the Federal Minister for Privatization Muhammad Mian Soomro, senior FBR and government officials, President RCCI Nadeem Rauf and other prominent business personalities.