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Tag: financial results

  • Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    Ghandhara Nissan declares 44 percent decline in net profit for nine-month period

    KARACHI: Ghandhara Nissan Limited, the assembler of light commercial and heavy vehicles in Pakistan, has posted significant decline in net profit by 44 percent for nine-month period ended March 31, 2019.

    The company submitted its finance results for July – March 2018/2019 to Pakistan Stock Exchange (PSX) on Monday.

    The company declared Rs135.92 million profit after tax for the period as compared with Rs242.85 million for the corresponding period of the last fiscal year.

    The earnings per share also fell to Rs2.38 for the period under review as compared with Rs4.91 in the same quarter of the last fiscal year.

    The revenue off the company was stagnant at Rs1.7 billion for the first nine months of the current fiscal year as compared with Rs1.74 billion in the same period of the last fiscal year.

    After excluding the cost of sales the gross profit of the company was at Rs300.89 million as against Rs358.95 million in last year.

    The profit before taxation of the company stood at Rs178.84 million for the nine-month period ended March 31, 2019 as compared with Rs316.82 million in the same period of the last fiscal year.

    The profit after tax for the third quarter (January – March) 2019 was sharply declined by 85 percent to Rs6.87 million as compared with Rs45.8 million declared for the same quarter of the last year.

  • PTCL quarterly revenue grows by 11 percent

    PTCL quarterly revenue grows by 11 percent

    ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) on Wednesday announced group’s revenue growth by 11 percent for first quarter ended March 2019.

    The financial results announced at the Board of Directors’ meeting held in Islamabad on April 17, 2019.

    PTCL Group’s revenue for the quarter has grown YoY by 11 percent to Rs.33.5 billion as a result of an accelerated growth in the Ufone and Ubank revenues.

    Ufone revenue has increased double digits YoY, UBank, a microfinance banking subsidiary of PTCL, has shown significant growth of 53 percent in its quarterly revenue over last year.

    PTCL Group’s operating profit and net profit for the quarter have improved by 34 percent and 95 percent respectively as a result of the revenue growth.

    PTCL revenue of Rs.17.9 billion for the quarter is slightly lower than last year.

    PTCL’s flagship Fixed Broadband services posted revenue growth of 5.8 percent over last year.

    PTCL continues its journey to upgrade top 100 exchanges under Network Transformation Project (NTP) in different parts of Pakistan.

    For the 76 exchanges fully transformed to date in 12 cities YoY revenue growth is even higher at 12 percent and there is 40 percent reduction in customer complaints.

    Corporate business continued its growth momentum from a strong 2018 and has achieved a double digit growth YoY. Growth drivers for corporate business are Cloud Infrastructure, IT, Security and Managed Services projects.

    Wireless revenue for the quarter has declined on year-on-year basis due to strong competition by the cellular companies providing wireless data services.

    There is continued decline in domestic and international voice revenues due to illegal/grey traffic termination, continued conversion of subscribers to OTT and cellular services resulting in declining voice traffic volumes.

    PTCL posted a Net Profit after Tax which is 10 percent higher than last year.

    Operating profit for the quarter remained under pressure compared to last year mainly due to increase in operating cost on account of significant hike in power tariffs.

    However, non-operating income has increased due to higher income on investments as a result of significant increase in benchmark interest rates by the State Bank of Pakistan.

  • Banking sector profits decline by 7 percent in 2018

    Banking sector profits decline by 7 percent in 2018

    KARACHI: The profits of banking sector have declined by 7 percent to Rs149 billion in 2018 as compared with around Rs160 billion in the preceding year, according to analysis of Topline Research issued on Tuesday.

    The analysts said that for 2018, despite 10 percent YoY increase in Net Interest Income (NII), profits were down 7 percent YoY (ex-HBL penalty) due to 1.8x higher provision charge, 64 percent lower capital gains and 14 percent higher administrative expenses.

    They expect net interest income to expand further due to the lagged impact of policy rate hikes. The analysts anticipate State Bank of Pakistan (SBP) to increase interest rates by further 75 basis points to 11 percent by December 2019.

    However, during 4Q2018, Pakistan Banking Sector profitability rose to Rs38.3 billion, up by 6 percent YoY. The increase in profitability is primarily owed to 16 percent YoY increase in net interest income as well as 7 percent increase in non-interest income.

    The analysts have taken results of all listed banks that have announced 4Q2018 financial results.

    Moreover, for 4Q2018 reversals in pension charge and Workers Welfare Fund (WWF) amounting to Rs4.2 billion and Rs6.7 billion, respectively, also supported the bottom-line we believe.

    Net Interest Income (NII) of the banks improved by 16 percent YoY to Rs135 billion in 4Q2018 as a result of a cumulative 425 basis points hike in policy rate during 2018.

    Similarly, on a sequential basis, NII is up 10 percent as the lagged impact of asset re-pricing kicked in.

    To note, SBP has raised policy rate by 425 basis points in 2018, with 150 basis points coming in 4Q2018.

    Comparing the big-5 (MCB, HBL, UBL, ABL, NBP; profits down 24 percent YoY) versus the rest under our coverage (MEBL, BAHL, BAFL, AKBL), the analysts see that mid tier banks have outperformed their larger peers due to better sensitivity to interest rates as well as absence of significant provision charge during the outgoing quarter.

    Profits of Mid-tier banks are up 32 percent YoY (they excluded BOP from mid tier numbers due to substantial one off provisioning in 4Q2017).

    Despite 16 percent YoY growth in net interest income, profitability growth was contained to 6 percent YoY primarily due to high provision charge specifically by the large banks including HBL, UBL and NBP.

    Cumulatively, total provision charge by the said three banks for 4Q2018 was Rs15.7 billion (around 73 percent of total provision by the sector), with NBP, UBL and HBL charging Rs6.8 billion, Rs5.6 billion and R3.3 billion, respectively.

    Overall, the sector booked provision charge of Rs21.5 billion compared to Rs13.3 billion in the same period last year.

    To note, BOP booked significant provision charge of Rs12.7 billion during 4Q2017 compared to reversal of Rs137 million in 4Q2018.

    NBP booked significant provision charges on its loan portfolio, specifically with regards to its exposure to Omni group, the analysts believe. Similarly, majority of UBLs charge was related to NPLs (Rs5.0 billion) mostly from its international loan book and most of HBLs booked charge was also on account of NPLs (Rs2.3 billion).

    Despite lower capital gains and dividend income, Non-interest income of the banks rose by 7 percent YoY mainly due to 17 percent higher fee income and 86 percent higher income from dealing in foreign currencies.

    They attribute higher non-interest income to rapidly growing loan book, higher trade volumes as well as rupee depreciation.

    Admin expenses grew by 20 percent YoY while non-interest expense rose by 14 percent YoY. The growth in non-interest income was contained due to reversal in provision for Workers Welfare Fund (WWF) by select banks (Rs6.7 billion in total).

    Cost to income of the sector increased by 3.1ppts YoY to 64.2 percent in 4Q2018.

  • Murree Brewery declares profit amid liquor ban in Sindh

    Murree Brewery declares profit amid liquor ban in Sindh

    KARACHI: Murree Brewery Company Limited has declared 4.6 percent increase in net profit despite ban on liquor sale in Sindh, according to half- year financial results for period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Thursday.

    The net sales revenue increased by 10.2 percent to Rs4.582 billion during July – December 2018 from Rs4.15 billion in the corresponding period of the last year.

    The gross profit of the company has increased by 10.2 percent to Rs1.544 billion from Rs1.4 billion.

    Earnings per share of the company have increased by 4.6 percent to Rs23.78 from Rs22.75 EPS.

    The company declared the profit despite ban on liquor sale in Sindh. It said that as advised earlier the case is pending before the Sindh High Court. Meanwhile, sales during the half year were satisfactory.

    The company also pointed out depreciation in local currency. It said that the rupee has further devalued to Rs.138 per US dollar increasing the cost of imports and making repayment of foreign currency loans and interest thereon dearer.

    The benefit to the country by making exports cheaper has been marginally received by reducing the current account deficit. The cost of production has increased with dearer imports and increases in the cost of gas and electricity which has also increased the cost of living of the public utilizing higher quantities of these utilities, it added.

    The company said that the Punjab Government issued a notification # SO(E&M)2-3/2011(P-II) dated 24th June, 2015 by which Still Head Duty was levied from 1st July, 2015 on all Pakistan Made Foreign Liquor and beer meant for consumption outside the province of Punjab. The Company challenged this notification in the Lahore High Court, Lahore.

    The notification was set aside by the Honorable High Court on 27th June 2016.

    The Company is paying this duty and recovering it from the buyers, which makes Murree Brewery products dearer than our competitors.

    The Punjab Government has filed an appeal in the Lahore High Court, Lahore praying the impugned judgment may be set aside and the Notification dated 24th June, 2015 be declared intra vires to the Constitution of Islamic Republic of Pakistan.

    Punjab Excise has got a stay against Sindh wine dealers and is collecting “extra duty”. The intra court appeal of the Excise Department has been dismissed by the Honorable Lahore High Court, Lahore on 19th February, 2019. However, the department has the right to appeal in the Supreme Court.

    The company said that tax on extraction for business purpose also affected the sales.

    In December 2018 the Supreme Court ordered a Re 1 per litre tax on water extracted for business purposes on a suo motu case pertaining to selling of water extracted from underground sources without any charge as well as the fitness of the same for human consumption.

    Finally it applies to many industries including cement, beverages, textiles etc. The modalities of this tax have not yet been determined.

    As the Company’s Tops and Liquor Divisions come under the purview of this tax, a review petition has been led in the Supreme Court.

  • Byco Petroleum declares 96pc decline in half-year profit

    Byco Petroleum declares 96pc decline in half-year profit

    KARACHI: The net profit of Byco Petroleum Pakistan Ltd. fell sharply by 96 percent for the first half ending December 31, 2018 due to depreciation in Pak Rupee value and weak upliftment of furnace oil.

    Byco Petroleum Pakistan Ltd. (BPPL) on Tuesday announced financial results for the six months ending on 31 December 2018.

    The net profit was Rs. 89 million as compared with Rs2.3 billion a year earlier, said a press release.

    On a per share basis, the company earned Rs0.02 per share during the six months ending on 31 December 2018 as opposed to Rs0.44 per share in the prior year.

    Byco Petroleum generated a gross profit of Rs1.4 billion in the first half of the current fiscal year compared with a profit of Rs4.7 billion a year earlier.

    The company’s gross sales increased by an impressive 52 percent during the first half of the fiscal year from the same period in the previous year to Rs123.47 billion.

    The company said that it was a difficult period for Pakistan’s energy industry however, and particularly so for the oil refining industry.

    The country witnessed a 14 percent drop in the value of the Pakistani Rupee against the US dollar.

    The oil price environment was highly volatile as the international Brent oil price jumped to annual highs then plunged to annual lows within a few months.

    Meanwhile, the upliftment of furnace oil (FO) remained weak in the country.

    This challenging backdrop had a negative impact on Byco Petroleum Pakistan Limited’s refinery throughput as well as refining margins.

    However, the management made every effort to minimize the company’s exposure to the tough market.

    Byco Petroleum is fully committed to improving its operating and financial performance in the future, said the press release.

  • Indus Motors declares fall in half-year profit on high cost of sales

    Indus Motors declares fall in half-year profit on high cost of sales

    KARACHI: Indus Motors Company Limited has declared 6.13 percent decline in half yearly net profit owing to significant rise in cost of sales for the period.

    According to financial results for half year period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Monday, the company declared profit after tax at Rs6.912 billion as compared with the profit of Rs7.364 billion in the corresponding half of the last year.

    The sales of the company surged by 21 percent to Rs76.44 billion during the first half of current fiscal year as compared with Rs63.07 billion in the corresponding half of the last year.

    However, cost of the sales increased more rapidly by 27 percent to Rs66.38 billion for the period under review as compared with Rs52.18 billion in the same period of the last year.

    Other expenses including administrative and distribution are flat at Rs1.337 billion as compared with Rs1.334 billion for the period.

    Indus Motors Company Limited declared profit before taxation at Rs10.03 billion during July – December 2018 as compared with Rs10.51 billion in the corresponding period of the last year.

    The company declared earnings per share for the period at Rs87.94 as against Rs93.69 EPS declared in the same period of the last year.

  • NBP’s annual profit falls by 13pc on massive provisioning, write-offs

    NBP’s annual profit falls by 13pc on massive provisioning, write-offs

    KARACHI: The net annual profit of National Bank of Pakistan (NBP) has declined by 13 percent owing to sharp increase in provisioning and write-offs.

    The net profit of the bank was at Rs20 billion in 2018 as compared with Rs23 billion in the previous year.

    In its financial results submitted to Pakistan Stock Exchange (PSX) on Friday, the bank declared earnings per share at Rs9.41 as compared with previous year’s EPS at Rs10.82.

    The net mark-up income and interest income of the bank had been increased to Rs60.66 billion in the year 2018 as compared with Rs54.25 billion in a year ago.

    Meanwhile, non-mark up income and interest income of the bank was at Rs36.248 billion for the year under review as compared with Rs31.065 billion a year ago.

    The cost of provisioning and write-offs increased massively to Rs11.3 billion as compared with Rs1.19 billion.

  • Meezan Bank announces 42 pc increase in annual profit

    Meezan Bank announces 42 pc increase in annual profit

    Karachi, Pakistan – In a financial disclosure submitted to the Pakistan Stock Exchange (PSX) on Thursday, Meezan Bank Limited has announced a remarkable 42 percent increase in profit after tax for the fiscal year ending December 31, 2018.

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  • HUBCO declares 26pc fall in half year profit

    HUBCO declares 26pc fall in half year profit

    KARACHI – Hub Power Company Limited (HUBCO) has announced a significant 26.6 percent decrease in profit after tax for the half-year ended December 31, 2018, according to the financial results submitted to the Pakistan Stock Exchange (PSX) on Thursday.

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  • United Bank registers 39 percent decline in annual profit

    United Bank registers 39 percent decline in annual profit

    United Bank Limited (UBL) has revealed a substantial decline of 39.53 percent in its annual profit for the year ended December 31, 2018, attributing the decrease to significant provisioning, write-offs, and pension liabilities.

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