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Tag: financial results

  • Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    KARACHI: Pak Suzuki Motors (PSMC) has declared massive loss of Rs1.52 billion for the first half ended June 30, 2019 despite multiple increase in prices of vehicles during the period.

    According to half yearly financial results submitted to Pakistan Stock Exchange (PSX), the company posted net loss of Rs1.525 billion as compared with growth of Rs1.29 billion in the corresponding half of the last fiscal year.

    According to Topline Securities, Pak Suzuki Motors posted loss per share (LPS) of 6.62 against earning per share (EPS) of Rs 4.78 for the quarter April to June 2019 in same period last year.

    Significant decline in earnings was mainly due to massive reduction in gross profit margins by 5ppts.

    During outgoing quarter revenue of the company witnessed a mere 1 percent YoY growth to Rs31 billion despite multiples hikes in prices owing to declining volumetric sales in said period.

    Gross profit margin were down by 5ppts, due to significant PKR depreciation against USD by 14 percent in 2QCY19 coupled with inflationary environment leading to high input costs.

    § Distribution cost has increased by 56 percent YoY due to higher transportation costs (from factory to dealer) which is currently borne by the company.

    The company has booked a tax reversal (higher tax recorded in previous accounts) owing to change in turnover expectations.

    Other Income has witnessed decline of 76 percent YoY mainly due to low income from bank deposits as the company has reduced cash balance in its accounts after decline in advance payments from customers.

    Finance cost has increased by 1.8x YoY due to addition of short term borrowings in the outgoing quarter.

    Key risks to company includes 1) Further PKR depreciation 2) slowdown in economy and 3) Entry of new auto players resulting in stiff competition.

  • National Bank declares 14.5 percent decline in after tax profit on imposition of super tax

    National Bank declares 14.5 percent decline in after tax profit on imposition of super tax

    KARACHI: National Bank of Pakistan (NBP) has declared 14.5 percent decline in after tax profit for the first quarter ended March 31, 2019 due to imposition of super tax.

    Meeting of the Board of Directors (BoD) of NBP was held on Wednesday at Bank’s Head Office in Karachi in which the BoD approved the financial statement of the Bank of the quarter ended March 31, 2019.

    The after tax profit for the quarter ended March 31, 2019 was at Rs4.2 billion, which was 14.5 percent lower when compared with Rs4.9 billion in the corresponding period of the last year.

    The bank attributed the decline in profit to imposition of super tax which was imposed through Finance Supplementary (Second Amendment) Act, 2019 for the tax year 2018 (financial year ended December 31, 2017.

    Pre-tax profit of the bank was at Rs8.7 billion for the period under review as against Rs7.6 billion for the corresponding quarter of 2018, registering 14.5 percent increase.

    The bank earned mark-up/ interest income amounting to Rs45.8 billion which is 45.9 percent higher than Rs31.4 billion earned during the corresponding period last year.

    This growth is attributed to the increase in discount rate, as well as a volumetric growth in both investment and advances, YoY.

    Also, the Bank’s non mark-up / interest income increased by 40.2 percent YoY and amounted to Rs8.3 billion.

    The bank’s unconsolidated pre-provision profit amounted to Rs10.98 billion which is 45.2 billion higher than Rs7.6 billion for the corresponding period o the last year.

    Earnings per share amounted to Rs1.97 as against Rs2.30 for the corresponding quarter ended March 31, 2018.

    The total assets of the bank as at March 31, 2019 stood at Rs2,401.8 billion as compared with Rs2,798.6 billion as on December 31, 2018, registering decline of 14.2 percent.

    Gross advances of the bank amounted to Rs1,046.1 billion which is slightly lower than Rs1,059.5 billion as on December 31, 2018.

    However, YoY, total advances registered increase by Rs176.6 billion or 20.3 percent as compared to Rs869.5 billion as of March 31, 2018.

    Total deposits of the bank as on March 31, 2019 amounted to Rs1,778.7 billion, lower by Rs232.7 billion (11.6 percent) as against Rs2,011.4 billion as of December 31, 2018. The drop was observed due to withdrawal of deposits by certain financial institutions. Customer deposits that from the core of bank’s funding pool however remained stable.

  • Byco Petroleum posts 80 percent decline in net profit

    Byco Petroleum posts 80 percent decline in net profit

    KARACHI: Byco Petroleum Pakistan Ltd. has posted around 80 percent decline in net profit for nine-month period ended March 31, 2019, according to financial results presented to Pakistan Stock Exchange (PSX) on Tuesday.

    Earnings per share of the company also fell to Rs 0.14 compared to Rs 0.66 last year.

    The company attributed the decline in profit that the oil refining sector in Pakistan experienced a challenging business environment in the first nine months of the current fiscal year marked by the economic slowdown, volatile oil prices, devaluation of the Rupee, and weak upliftment of furnace oil (FO).

    The company’s gross sales increased by 32 percent from the corresponding period of the prior year to Rs 182.9 billion. Net sales increased by 35 percent to Rs 145.2 billion.

    Byco Petroleum’s gross profits fell 58 percent to Rs 3.03 billion in the first nine months of the ongoing fiscal year.

    Operating profit for the period came in at Rs 2.30 billion compared to Rs 5.85 billion in 2018.

    The company earned a net profit of Rs 719.6 million compared to Rs 3.53 billion a year earlier.

    Amir Abbassciy, CEO of Byco Petroleum Pakistan Limited, said commented on the financial result: “Despite many factors which have been working against us, including oil prices, currency weakness, and an evolving fuel mix for the nation, we are hopeful for better results in the near term.”

    Byco expresses its deepest appreciation and gratitude to the government, its shareholders, customers, and strategic partners for offering cooperation in this period.

    The company reiterates its resolve to manage this difficult time to the best of its abilities and will continue to strive to deliver optimum results for its stakeholders.

  • Meezan Bank posts 49 percent growth in quarterly net profit

    Meezan Bank posts 49 percent growth in quarterly net profit

    KARACHI: Meezan Bank Limited has declared 49 percent increase in profit after tax to Rs2.85 billion for the quarter ended March 31, 2019 as compared with Rs1.19 billion in the same period of the last fiscal year.

    The Earnings per Share (EPS) – on enhanced capital increased to Rs. 2.44 per share, said a statement on Monday.

    The Board of Directors of Meezan Bank Limited in its meeting approved the condensed interim unconsolidated financial statements of the Bank and its consolidated financial statements for the quarter ended March 31, 2019.

    The meeting was presided by Mr. Riyadh S. A. A. Edrees – Chairman of the Board and Faisal A. A. A. Al – Nassar – Vice Chairman of the Board, was also present.

    The Board has approved 10 percent interim cash dividend (Rs 1.00 per share) and 10 percent bonus shares in the meeting. Quarterly cash dividend has been approved for the first time in the history of the Bank and is in keeping with the Board desire to ensure that investors in Meezan Bank are well looked after. The Bank has maintained an unbroken payout record since the Bank’s listing on Stock Exchange in the year 2000.

    The growth in profitability was driven by an increase of 57 percent in net spread primarily due to the Bank’s focus on maintaining a good quality high yield earning assets portfolio.

    Profit paid to depositors also doubled, as a result of increase in deposits and increase in depositors’ profit rates. The fees and commission income of the bank grew by 18 percent driven by an increase in trade business volume handled by the bank.

    Administrative and operating expenses increased by 24 percent primarily due to rising inflation, rupee devaluation and increase in costs associated with new branches – an investment in the future.

    However, the rise in expenses was sufficiently absorbed by the growth in the bank’s income resulting in improvement in the banks income expense ratio. The bank added 16 new branches to its network during the quarter bringing the total number of branches to 676 in 189 cities.

    The Bank is now the 7th largest bank in terms of branch network as well as in terms of deposit base.

    The investments portfolio increased to Rs219 billion from Rs124 billion in December 2018 – a growth of 77 percent. During the quarter, a consortium led by Meezan Bank successfully closed Pakistan’s first-ever energy Sukuk issued by the Power Holding Private Limited, a company wholly owned by the Government of Pakistan (GoP).

    The Sukuk is guaranteed by the GoP and is eligible for SLR for the purposes of the State Bank of Pakistan (SBP). The Bank is the largest investor in this Sukuk with a participation of Rs. 85 billion.

    The Islamic financings and related assets portfolio closed at Rs494 billion with an ADR of 64 percent. The bank maintained its financing exposure in all sectors and continued to actively pursue growth in Small and Medium Enterprise (SME) / Commercial and Consumer segment.

    The NPL ratio and NPL coverage ratio stood at 1.4 percent and 137 percent respectively. The bank remains a well-capitalized institution with Capital Adequacy Ratio of 15.5 percent.

    The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited), in 2018, assigned the Bank an Entity Rating of ‘AA+’ (Double A Plus) for the Long Term and ‘A1+’ (A-One Plus) for the Short Term with stable outlook.

    The Subordinated Tier II Sukuk and Additional Tier I Sukuk of the Bank has been assigned a credit rating of ‘AA’ (Double A) and ‘AA-’ (Double A Minus) respectively. These ratings represent sound performance indicators of the Bank.

  • PSX’s net profit falls by 10.6pc on elimination of tax on bonus shares

    PSX’s net profit falls by 10.6pc on elimination of tax on bonus shares

    KARACHI: The earning of Pakistan Stock Exchange (PSX) during first nine months of current fiscal year fell by 10.6 percent due to elimination of tax on bonus shares, which results no dividend received by the capital market.

    The stock market on Friday released its financial report and said that its earnings were Rs59 million during July-March 2019 as compared with Rs66 million in the corresponding period of the last fiscal year.

    The PSX said that foreign investors had been balancing their portfolios since the net buy position for the third quarter 2019 stood at over $31.3 million. “This indicates their optimism about the long term prospects of Pakistan’s equity market,” it said.

    “However, during the nine months period ended March 31, 2019, the foreign investors off-loaded securities worth $373 million which was absorbed by the local investors,” it added.

    During the period, the Finance Supplementary (Second Amendment) Act, 2019 was enacted in March 2019 and some notable features favorable to the capital market include abolishment of the advance tax at 0.02 percent on purchase and sale value of shares traded in lieu of tax on commission applicable to members of the stock exchange, loss on disposal of securities would be allowed to carry forward to the next year and subsequent two tax years, to be offset against capital gain earned in those years and effective July 01, 2019, for companies availing group relief, tax on inter-corporate dividend has been reduced to the extent of percentage of shareholding the recipient of dividend has in the distributing company.

    PSX recorded a pre-tax profit of Rs64 million for the nine-month period ended March 31, 2019 against Rs122 million for the corresponding period of the last fiscal year, posting 48 percent decline.

    During the year, PSX implemented revised fee structure for the annual listing fee. This structure resulted increase in revenue by Rs113 million during first nine months of current fiscal year.

  • Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan declares 81 percent decline in net profit

    Shell Pakistan Limited announced a significant 81% decline in its profit after tax, as revealed by the company’s financial results for the quarter ended March 2019, approved by the board of directors in their meeting held on Tuesday.

    (more…)
  • 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.