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.
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.
The company declared Rs187.08 as earnings per share (EPS) for the quarter under review as compared with EPS of Rs120.52 in the same quarter of the last year.
The board of directors of Unilever Pakistan Foods Limited in its meeting held on October 25, 2021 approved the un-audited condensed interim financial information for the nine months ended September 30, 2021.
The after tax profit for nine months period ended September 30, 2021 has also surged by 45 per cent. The company announced the net profit of Rs3.61 billion during January – September 2021 as compared with Rs2.49 billion in the same period of the last year.
The company announced Rs567.20 EPS for the period under review as compared with Rs391.53 in the same period of the last year.
The company said that sales grew by 28 per cent on the back of strong fundamentals i.e. brand equity, wider reach and effective spending on advertisement and promotion.
The growth was broad based with both retail business and food solution delivering strong result of easing lockdowns.
Gross margin increased by 1.23 per cent to 43.69 per cent versus same period last year, through a combination of pricing, better cost absorption and a rigorous savings agenda.
EPS increased by 45 per cent versus the same period last year driven by growth, margin improvement and tax credits pertaining to capital expenditure.
About the future outlook of the country, the company said that Pakistan’s economy has shown resilience in the face of global COVID-19 pandemic, witnessing GDP growth of 3.94 per cent in fiscal year 2021 as a result of timely monetary and fiscal measures.
This was supported by a nation-wide vaccination drive which has, so far, played an important role in successfully fighting COVID. With restriction easing out further, commercial activity expected to return to pre-covid levels.
“However, rising global commodity prices and energy costs coupled with sharp rupee devaluation is expected to further aggravate the inflationary headwinds which in turn, may have significant implications on the economic activity in the country,” the company said.
“In such challenging times, the management remains committed to navigate by leveraging the power of our brands and our global and local expertise to drive efficiencies within the value chain. We will continue our efforts on providing value to our consumers to meet their daily needs and on delivering competitive, consistent, responsible, and profitable growth benefitting all stakeholders.”
KARACHI: The stocks have witnessed a decline of 149 points on Monday owing to inflationary pressure and rise in international oil prices. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell to 45,429 points as compared with last Friday’s closing of 45,578 points.
Analysts at Topline Securities said that a lackluster session was observed at the bourse today with the KSE-100 index closing the day at 45,429.
Higher international oil prices coupled with concerns over the inflationary pressures kept the market in check.
MEBL, LUCK, HBL, MLCF & AKBL were the major laggards in the KSE-100 index and cumulatively dragged the index down by 126.06 points while on the other hand THALL, PPL, DAWH, FFC & SHFA cumulatively added 62.2 points.
Volumes remained extremely low after the introduction of the new PSX trading system which witnessed its 1st day live trading.
The KSE All Share Index saw a volume and value traded of 165.91 million shares and Rs4.98 billion respectively. The volume leader for today was HUMNL with 50.757 million shares exchanging hands as the company notified the exchange that they have received a Public Announcement of Intention by Duraid Qureshi to acquire up to 35.15 per cent of the total issued paid up capital of the company.
KARACHI: The stock market is likely to stay positive during the next week as the IMF and Pakistan expected to reach an agreement.
Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week. With IMF and Pakistan expected to reach agreement soon, the investor sentiment is anticipated to remain buoyant.
Moreover, with the ongoing result season, certain sectors and scrips are expected to stay under limelight.
Keeping in view concerns over inflation and devaluation of Pak Rupee against greenback, investors are expected to have a cautious approach.
The KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.2x (2021) compared to Asia Pac regional average of 14.7x while offering a dividend yield of ~8.1 per cent versus ~2.2 per cent offered by the region.
The market commenced on a negative note this week given the uncertainty over outcome of Pakistan-IMF talks tagged with surge in petroleum prices raising concerns over inflation.
The market sentiment changed after Advisor to the PM informed that talks with IMF were moving in the positive direction, with staff-level agreement expected to be reached soon.
Alongside this, the current account deficit for September 2021 narrowed by 24.5 per cent MoM to USD 1.1 billion, fueling the positive momentum.
On the flip, continuous drop in PKR/USD parity to PKR 174 (all time high exchange rate), reduction in SBP reserves by 8 per cent WoW to USD 17.5 billion and FATF retaining Pakistan on grey-list in its plenary meeting, kept the index in check.
Albeit, the market closed at 45,578 points, gaining 757 points (up by 1.7 per cent) WoW.
Sector-wise positive contributions came from i) Commercial Banks (463 points), ii) Cement (184 points), iii) Oil & Gas Exploration Companies (137 points), iv) Fertilizer (107 points), and v) Insurance (42 points).
Whereas, sectors which contributed negatively were i) Technology & Communication (155 points), and ii) Food & Personal Care Products (31 points).
Scrip-wise positive contributors were HBL (187 points), UBL (150 points), ENGRO (99 points), LUCK (72 points) and MCB (64 points).
Meanwhile, scrip-wise negative contribution came from TRG (113 points), PSO (27 points) and SYS (26 points).
Foreign selling continued this week, clocking-in at USD 7.3 million compared to a net sell of USD 13.3 million last week. Major selling was witnessed in Fertilizer (USD 4.5 million) and Commercial Banks (USD 3.8 million). On the local front, buying was reported by Insurance Companies (USD 4.6 million) followed by Other Organizations (USD 2.5 million).
Average volumes clocked-in at 299 million shares (down by 13 per cent WoW) while average value traded settled at USD 64 million (down by 10 per cent WoW).
KARACHI: Engro Corporation Limited has posted a significant 23 per cent growth in consolidated revenue for the nine-month period ended on September 30, 2021.
Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the third quarter ended September 30, 2021.
Engro delivered a strong operational performance in first nine months of 2021 as its consolidated revenue grew by 23 per cent from Rs 182,497 million as compared with Rs223,581 million in the corresponding period of the last year.
The company recorded a consolidated Profit After Tax (PAT) of Rs40,504 million up by 31 per cent from same period last year.
Profit attributable to the owners stood at Rs23,173 million compared to Rs18,345 million in the first nine months of 2020, resulting in an Earnings per Share (EPS) of Rs40.22 compared to Rs31.84 in the nine months of 2020. The growth in the bottom line is primarily attributable to increased profits posted by Fertilizers and Petrochemicals businesses.
On a standalone basis, the Company posted a PAT of Rs 16,015 million against Rs 9,283 million in 9M 2020, translating into an EPS of Rs 27.80 per share. The Company also announced an interim cash dividend of Rs 5 per share for third quarter taking the total dividend distributed for the year to Rs 24 per share.
Financial Performance – Segmental Perspective:
Fertilizers: Domestic market witnessed strong agricultural sector performance in 2021 with limited impact from COVID-19 led lockdowns. Prices of agri commodities remained firm during the quarter resulting in improved earnings for farmers and higher urea industry volumes versus prior year.
Engro Fertilizers Limited (“EFert”) revenue during the period stood at Rs 92,742 million versus 78,138 million on the back of higher Urea sales of 1,644 KT in comparison to 1,451 KT in 9M 2020. Urea production stood 1,560 KT versus 1,694 KT in 9M 2020 on account of planned plant turnarounds. EFert recorded Phosphate sales of 242 KT against 366 KT in 9M 2020. As a result, the PAT for EFert stood at Rs 14,921 million for 9M 2021 as compared to Rs 11,491 million in the same period last year.
Petrochemicals: International PVC prices reached an all-time high of $1850/MT by September end due to high demand along with global supply disruptions. Domestic PVC market recorded a volumetric increase of 30 per cent in Q3 2021 against previous quarter as buying sentiment improved.
Engro Polymers and Chemicals Limited (“EPCL”) announced commercial operations of the new PVC plant on March 01, 2021, increasing the capacity by 100 KT to 295 KT per annum and commercial operations of 50 KT new VCM DBN capacity on June 25, 2021 increasing capacity to 245 KT per annum.
In 9M 2021, EPCL recorded a revenue of Rs 49,323 million as compared to Rs 22,931 million in in 9M 2020. The business witnessed its highest ever profit of Rs 10,372 million versus Rs 2,103 million on account of increased volumetric sales, efficient operations and higher international prices.
Connectivity: Engro continued to expand its footprint through Engro Enfrashare which has now become the country’s largest Independent TowerCo (with 48 per cent market share vs 41 per cent in 2020) in terms of operational sites, serving all Mobile Network Operators in Pakistan. As at September 30, 2021, Enfrashare held a portfolio size of 2,030 operational sites and 2,219 tenancies resulting in a tenancy ratio of 1.09x.
The telecom sector in Pakistan is registering an annual growth of 28 per cent with the 3G / 4G subscriber base expanding beyond 100 million. This has led Engro to enhance its total equity investment in the Telecom Infrastructure vertical to Rs 21.5 billion. Engro has also formed a dedicated platform for connectivity and telecom infrastructure related initiatives by the name of Engro Connect (Pvt.) Limited. Engro Connect is a wholly owned subsidiary of Engro and will hold complete ownership of Engro Enfrashare (Pvt.) Limited.
Energy & Power: Sindh Engro Coal Mining Company (“SECMC”) supplied around 3 million tons of coal to Engro Powergen Thar Limited (“EPTL”) during the period. SECMC’s expansion work to enhance its output to 7.6 million tons per annum is in progress. EPTL remained fully operational and achieved 84.7 per cent availability with a load factor of 82 per cent, dispatching 3,253 GwH to the national grid during the period.
Engro Powergen Qadirpur Limited (“EPQL”) operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, EPQL’s plant has been made available on mixed mode. The plant dispatched a net electrical output of 615 GwH to the national grid with a load factor of 44 per cent compared to 32 per cent during the same period last year. EPQL posted a PAT of Rs 1,463 million for the current period as compared to Rs 2,031 million for 9M 2020, which is mainly attributable to retirement of debt component.
Terminals: Profitability of both the LNG and chemicals terminal remained healthy during the period. The chemicals terminal throughput volumes normalized to 934 KT versus 806 KT last year as volumes were impacted in 2020 due to lockdowns because of COVID-19. The LNG terminal handled 52 cargoes against 54 cargoes during same period last year, delivering 158 bcf re-gasified LNG in to the SSGC network.
With around two years of planning and efforts amidst COVID-19 volatility, Engro Elengy Terminal Limited (“EETL”) has successfully completed Pakistan’s first-ever dry docking activity at Qatar dockyard. During the dry docking period, FSRU Sequoia enabled gas supply continuity ensuring national energy security. After completion of its dry docking, FSRU Exquisite has now returned to Pakistan and is online.
Analysts at Topline Securities said that the KSE 100 index opened on a positive note and gain to make an intraday high of 217 points, however it failed to sustain its momentum on account of protest by right wing religious party and opposition party alliance (Pakistan Democratic Movement) across Pakistan.
A major contributions to the index came from HBL, UBL, AICL, CHCC and THALL, as they cumulatively contributed 104 points to the index. On the flip side TRG, ENGRO, PPL, PSO, and OGDC, as cumulatively contributed 167 points to the index.
Traded volume and value for the day stood at 301 million shares and Rs11.8 billion. HUMNL was today`s volume leader with 36 million shares.
KARACHI: Bestway Cement Limited announced on Friday its plans to significantly expand its production and energy capabilities with the establishment of a Brownfield cement plant and a 6.4 MW off-grid solar power plant.
KARACHI: Murree Brewery Company Limited on Friday announced financial results for the quarter ended September 30, 2021. The profit after tax of the company increased by 22 per cent to Rs437 million for the quarter under review as compared with Rs357.2 million in the corresponding quarter of the last year.
The company declared earning per share (EPS) at Rs15.80 for the period as against Rs12.91 in the same period of the last year.
The board of directors of Murree Brewery Company Limited in their meeting held on October 22, 2021 recommended an interim cash dividend for the quarter ended September 30, 2021 at Rs5 per share i.e. 50 per cent. However, the board has not recommended any bonus shares, right shares or any other entitlement.
According to the financial results submitted to the Pakistan Stock Exchange (PSX), the company’s net turnover increased to Rs3.71 billion for the quarter ended September 30, 2021 as compared with Rs3.05 billion in the same quarter of the last year.
Cost of sales also increased to Rs2.76 billion as compared with Rs2.22 billion. The company declared gross profit of Rs945 million as compared with Rs832 million.
The operating profit of the company grew to Rs525 million as compared with Rs469.52 million. The payment of tax for the quarter was flat at Rs160.5 million as compared with Rs160.48 million.
Analysts at Arif Habib Limited said that a clear signal of concluding IMF review and resumption of IMF Package by Shaukat Tarin swayed the index to add a total of 665 points during the session, which has cumulatively added around 3000 points since the near term bottom of 43200 points.
Bank and E&P stocks contributed the most, whereas selling pressure was witnessed in Technology and Cyclicals (Cement and Steel) sectors.
After making an intra-day high, Investors resorted to profit booking that brought the net gains to reach 322 points at the end of session.
Anticipation of interest rate hike by SBP in the coming monetary policy helped the banking sector stocks to stage a rally, and E&P stocks inched up on the prospects of US$100/bbl for international crude oil price.
Among scrips, BOP topped the volumes with 25.5 million shares, followed by TELE (24.2 million) and HUMNL (23.8 million).
Sectors contributing to the performance include Banks (+220 points), E&P (+97 points), Fertilizer (+80 points), Cement (+31 points) and Chemical (+29 points).
Volumes increased from 308.1 million shares to 338.3 million shares (+10 per cent DoD). Average traded value also increased by 29 per cent to reach US$ 76.8 million as against US$ 59.7 million.
Stocks that contributed significantly to the volumes include BOP, TELE, HUMNL, WTL and UNITY, which formed 34 per cent of total volumes.
KARACHI: The KSE-100 index registered an increase of 870 points on Wednesday as investors’ sentiments improved on IMF talks resumption.
The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) at 45,500 points as against last trading on October 18, 2021 at 44,629 points.
Analysts at Arif Habib Limited said that as the news of resumptions of dialogue with IMF team relayed, investors’ concerns over the package started dissipating, causing the Index to make an upward swing.
Cement, Technology, Banks, Fertilizer stocks remained in the limelight. Cement stocks led the index on news of Cement companies increasing the cement price / bag, whereas dwindling outflows from foreign counters in Banks and Fertilizer stocks also helped these sectors post healthy gains.
Among scrips, WTL led the volumes with 49.3 million shares, followed by HUMNL (24.7 million) and BYCO (15.6 million).
Sectors contributing to the performance include Banks (+201 points), Cement (+160 points), Technology (+106 points), Fertilizer (+79 points) and Textile (+49 points).
Volumes increased from 248.2 million shares to 308.2 million shares (+24 per cent DoD). Average traded value also increased by 18 per cent to reach US$ 59.8 million as against US$ 50.8 million.
Stocks that contributed significantly to the volumes include WTL, HUMNL, BYCO, TELE and UNITY, which formed 39 per cent of total volumes.
Stocks that contributed positively to the index include TRG (+65 points), LUCK (+58 points), ENGRO (+50 points), HUBC (+49 points) and HBL (+44 points). Stocks that contributed negatively include OGDC (-8 points), NESTLE (-7 points), HGFA (-6 points), GHGL (-5 points) and KAPCO (-4 points).
