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Pakistan, Afghanistan Customs ink Mutual Assistance Agreement
October 28, 2020: Pakistan and Afghanistan have signed Customs Mutual Assistance Agreement for establishment of Electronic Data Interchange.
The agreement was signed by Member (Customs-Operation), FBR Syed Muhammad Tariq Huda and Director General of Afghan Customs Department, Khalillulah Saleh Zad on behalf of their respective organizations in Islamabad.
During the signing ceremony, Afghanistan's Minister of Commerce and Industry, Nisar Ahmad Ghoriyani and Chairman FBR Muhammad Javed Ghani were also present.
The agreement will ensure reduced clearance time as well as optimum trade facilitation for import, export and transit cargo between the two countries.
It will also ensure reduced risk of evasion of duties and taxes and effective control over smuggling.
Radio Pakistan
European stock tumble at open on virus curb fears
October 28, 2020: European stock markets tanked at the open on Wednesday as investors fretted over speculation about the imminent introduction of tighter lockdown measures to combat soaring coronavirus infection rates, dealers said.
In initial deals, the benchmark Paris CAC 40 shares index nosedived 3.2 percent to 4,579.89 points, Frankfurt's DAX 30 tumbled 2.9 percent to 11,709.39 and London's FTSE 100 sank 2.2 percent to 5,605.59. Other markets were also down sharply.
"The double whammy of fears of further lockdowns crimping any tentative economic recovery in the UK and Europe, and a follow-through of overnight weakness from the US-based partly on the lack of further stimulus, have had a negative impact on investor sentiment," Interactive Investor analyst Richard Hunter told AFP.
AFP/APP
Nishat Mills reports a 26% YoY decline in first-quarter profit
October 28, 2020 (MLN): Nishat Mills Limited (NML) has declared its financial results today for the quarter ended September 30th, 2020, according to which it has posted its net profits of Rs 1.69 billion (EPS: Rs 3.52), down by 26.40% YoY compared to the same period last year net profit of Rs 2.29 billion (EPS: Rs 4.67).
According to the research note by AKD, the decline in earnings is primarily attributable to a 70% YoY decline in other income, which is due to the absence of dividend income from MCB following the SBP's moratorium on payouts. (MCB contributed PKR1.0 per share to NML’s pre-tax earnings in 1QFY20).
During the period, the top-line earnings of the company increased marginally by 0.30% YoY while the cost of sales rose by 6% YoY. Accordingly, gross margin shrank from 20% to 16% during the said period which was partially offset by lower other expenses (down by 65.6% YoY).
However, a 28% decline in finance cost to Rs 485 million along with the share of profit from the associates of Rs 355 million provided much-needed respite to the bottom line.
Consolidated Profit and Loss Statement for the quarter ended September 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Revenue | 25,554,947 | 25,477,386 | 0.30% |
Cost of Sales | (21,546,236) | (20,316,100) | 6.05% |
Gross Profit | 4,008,711 | 5,161,286 | -22.33% |
Distribution cost | (1,446,472) | (1,548,121) | -6.57% |
Administrative expenses | (522,771) | (502,624) | 4.01% |
Other expenses | (81,764) | (237,655) | -65.60% |
total expenses | (2,051,007) | (2,288,400) | -10.37% |
| 1,957,704 | 2,872,886 | -31.86% |
Other income | 157,398 | 521,367 | -69.81% |
profit from operation | 2,115,102 | 3,394,253 | -37.69% |
Finance cost | (485,466) | (673,640) | -27.93% |
| 1,629,636 | 2,720,613 | -40.10% |
share of profit/(Loss) from associates | 355,902 | (118,447) |
|
Profit before taxation | 1,985,538 | 2,602,166 | -23.70% |
Taxation | (294,467) | (304,526) | -3.30% |
Profit for the period | 1,691,071 | 2,297,640 | -26.40% |
Earnings per share - basic and diluted (Rupees) | 3.52 | 4.67 | -24.63% |
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Volumetric growth on the back of Yaris lifts INDU’s profits to Rs 1.84 billion
October 28, 2020 (MLN): Major automaker Indus Motors (PSX: INDU)’s net profits for the quarter ended on September 30th, 2020 have surged by 40% YoY to Rs 1.84 billion as apposed to Rs 1.3 billion reported at the end of 1QFY20.
This translated into earnings per share which clocked in at Rs 23.48 against Rs 16.78 stood in the same quarter last year.
The increase in profitability was attributable to higher revenues and the other income during the quarter.
The sales revenue of the company jumped remarkably by 65% YoY to Rs 34 billion mainly due to 75% YoY volumetric growth on the back of Yaris (51% of volumes) to 11,715 units, compared to 6,707 units in 1QFY20. To note, company sold 6,009 units of Yaris, Corolla 3,614 units, Fortuner 390 units and Hilux 1,702 units during the quarter.
Despite rise in sales, the company’s gross margins plunged to 7% from 10%. According to the report by Shajar Capital, this was due to depreciation of USDPKR and JPYPKR respectively by 5.68% YoY and 6.76%YoY to Rs166.96/USD and Rs1.57/JPY in the international markets. On the contrary, CRC prices has plunged by 8% YoY in 1QFY21 to USD 519/MT in the international markets.
Moreover, the other income of the company witnessed an upsurge of 56.67% YoY to Ra 1 billion amid drastic surge in short term investments (PIBs and T-Bills).
On the tax front, the effective rate during the quarter was set at 30% in contrast to 26% in 1QFY20.
Alongside financial results, the company declared an interim cash dividend of Rs 12.00 per share for the quarter mentioned above compared to Rs 7.00 per share in 1QFY20.
Financial results for the Quarter September 30th, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Net sales | 34,194,928 | 20,716,040 | 65.06% |
Cost of sales | (31,906,778) | (18,707,669) | 70.55% |
Gross profit | 2,288,150 | 2,008,371 | 13.93% |
Distribution expenses | (226,027) | (400,324) | -43.54% |
Administrative expenses | (316,072) | (324,219) | -2.51% |
Other operating expenses | (8,655) | (48,028) | -81.98% |
Workers' Profit Participation Fund and Workers' Welfare Fund | (146,112) | (131,867) | 10.80% |
Other income | 1,088,536 | 694,782 | 56.67% |
Finance cost | (34,092) | (19,466) | 75.14% |
Profit before taxation | 2,645,728 | 1,779,249 | 48.70% |
Taxation | (800,358) | (460,514) | 73.80% |
Profit after taxation | 1,845,370 | 1,318,735 | 39.93% |
Earnings per share - basic and diluted (Rupees) | 23.48 | 16.78 | 39.93% |
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KAPCO gets a new CEO
October 28, 2020 (MLN): The Board of Directors of Kot Addu Power Company Limited (KAPCO) has appointed Mr. Aftab Mahmood butt has the Chief Executive Officer of the Company for a period of two years with effect from August 1, 2020,
He has previously worked as a General Manager-Finance & Corporate Planning at Pakistan Electric Power Co. and Secretary & Member at Corporate & Industrial Restructuring Corp.
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Treet Corporation to invest PKR 250 million for capacity enhancement of Hygiene Razor Plant
October 28, 2020 (MLN): The Board of Directors of Treet Corporation Limited has decided to enhance the capacity of the Hygiene Razor Plant owing to an increase in demand for Hygiene Razor, and has given a CAPEX approval for Rs. 250 million for capacity enhancement.
The decision was taken after considering the optimum capacity of the plant, and the fact that the demand exceeds the existing production capacity.
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HUBCO witnesses a 46% increase in earnings during 1QFY21
October 28, 2020 (MLN): Hub Power Company Limited (HUBCO) has made profits of Rs. 8.44 billion (EPS: 6.28) for the quarter ended September 30, 2020, which shows a growth of 46.4% as compared to the earnings of the same period last year. The company also announced an Interim Cash Dividend of Rs. 4 per share i.e. 40%.
The revenue of HUBC increased by 12% on account of partial invoicing of pending LPI invoices, as per Taurus Securities. The top-line income also benefitted from the revenue that came from the Narrowal and Laraib power plant, which in turn increased due to a higher load factor.
The rise in earnings can also be attributed to the share of profits from China Power Hub Generation Company Limited (CPHGC) and Sindh Engro Mining Company (SECMC). Further, higher dollar indexation, as well as higher spread over funding of receivables, added to the profitability.
According to Foundation Securities, the Hub power base plant dispatched only 37 GWh of electricity, at a mere utilization of 1% during the quarter. Hub Narowal plant dispatched 226 GWh of electricity, up by 15% YoY, and runs at a utilization rate of 48% YoY. The lower utilization has been attributed to the induction of cheaper fuel power plants into the generation mix amid a slowdown in electricity demand growth.
The finance costs went down by 38% due to a decline in the policy rate during the period.
Consolidated Financial Results for the quarter ended September 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Sep-20 | Sep-19 | % Change | |
Net sales | 15,794,082 | 14,081,059 | 12.2% |
Operating costs | (7,654,849) | (6,589,672) | 16.2% |
Gross profit | 8,139,233 | 7,491,387 | 8.6% |
General and Administrative expenses | (386,061) | (448,814) | -14.0% |
Other income | 57,409 | 68,015 | -15.6% |
Other operating expenses | (12,654) | (22,566) | -43.9% |
Share of profit from associates | 3,482,171 | 1,873,084 | 85.9% |
Finance cost | (1,904,114) | (3,059,313) | -37.8% |
Profit before taxation | 9,375,984 | 5,901,793 | 58.9% |
Taxation | (934,682) | (78,305) | 1093.6% |
Profit after taxation | 8,441,302 | 5,823,488 | 45.0% |
Earnings per share | 6.28 | 4.29 | 46.4% |
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MLCF resolves to invest up to Rs 200 million in Kohinoor Textile Mills for 1 year
October 28, 2020 (MLN): Maple Leaf Cement Factory Limited (MLCF) has resolved by way of special resolution for investment in the form of loans/advances from time to time to Kohinoor Textile Mills Limited, the holding company, up to an aggregate sum of Rs. 200 million for a period of one year commencing November 01, 2020 to October 31, 2021 (both days inclusive) at the mark-up rate of one percent above three months KIBOR or one percent above the average borrowing cost of the Company, whichever is higher.
The special resolutions have been duly adopted by the shareholders at an Annual General Meeting (AGM) held on October 27, 2020.
According to the notice issued to PSX, the vide special resolution passed in a general meeting held on October 26, 2019 by the shareholders, the Company was authorized to extend a facility of similar nature to the extent of Rs. 200 million which is valid till October 31, 2020.
The company has further resolved that Chief Executive Officer and Secretary of the Company will be hereby authorized singly to take all steps necessary, ancillary and incidental, corporate and legal formalities for the completion of transactions in relation to the loans/advances to the holding company but not limited to the filing of all the requisite statutory forms and all other documents with the Securities and Exchange Commission of Pakistan, executing documents all such notices, reports, letters and any other document or instrument to give effect to the above resolution.
An official notification issued by the company in this regard further resolved that the transactions conducted with the Related Parties as disclosed in note 44 of the unconsolidated financial statements for the year ended June 30, 2020 and specified in the Statement of Material Information under Section 134(3) be and are hereby ratified, approved and confirmed.
The Board of Directors of the Company will be hereby authorized to approve the transactions to be conducted with the Related Parties on case to case basis for the financial year ending on June 30, 2021.
MLCF resolved further that these transactions by the Board shall be deemed to have been approved by the shareholders and shall be placed before the shareholders in the next Annual General Meeting for their formal ratification/approval.
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FFC reports a 36% growth in profits during 9MCY20 despite lower revenue
October 28, 2020 (MLN): Fauji Fertilizer Company has announced earnings of Rs. 18 billion (EPS: 18.17) for the nine months ended September 30, 2020, i.e. around 36% higher than the earnings reported in the same period of last year.
The company’s revenue fell by nearly 5% on account of a decline in the prices of Urea and Dap. However, a drop in the cost of sales by 11.3% owing to the removal of the GIDC levy on fuel and feed helped in lifting the gross profit by 9.4%.
Similarly, lower interest income from saving accounts as well as the absence of dividends from associate companies.
The finance cost declined by 17.7% due to the lower interest rate regime
The company paid an Interim Cash Dividend for the half-year ended September 30, 2020, at Rs. 2.55 per share i.e. 25.50%. This is in addition to the Interim Dividend already paid at Rs. 5.25 per share i.e. 52.5%.
The Board of Directors of the Company also approved submission of an Expression of Interest (EOI) for the acquisition of majority shares, in Foundation Wind Energy-l Limited and Foundation Wind Energy-ll Limited, collectively held by Fauji Fertilizer Bin Qasim Limited (FFBL) and Fauji Foundation.
The above-mentioned EOI will be followed by a detailed Due Diligence of the Targets and the acquisition, if determined feasible, will be subject to negotiation with existing majority shareholders, approvals of the Board, and Company Shareholders, procurement of requisite regulatory approvals and fulfillment of related customary conditions.
Consolidated Financial Results for the nine months ended September 30, 2020 (Rupees'000) | |||
|---|---|---|---|
Sep-20 | Sep-19 | % Change | |
Net sales | 72,777,972 | 76,523,990 | -4.9% |
Cost of goods sold | (46,798,703) | (52,769,768) | -11.3% |
Gross profit | 25,979,269 | 23,754,222 | 9.4% |
Administrative and distribution expenses | (5,950,712) | (6,213,558) | -4.2% |
Other income | 3,931,539 | 4,050,578 | -2.9% |
Other expenses | (1,825,157) | (1,698,009) | 7.5% |
Share of profit of associates and joint venture | 3,556,280 | 117,777 | 2919.5% |
Finance cost | (1,861,435) | (2,262,557) | -17.7% |
Profit before taxation | 23,829,784 | 17,748,453 | 34.3% |
Taxation | (5,796,412) | (4,527,987) | 28.0% |
Profit after taxation | 18,033,372 | 13,220,466 | 36.4% |
Earnings per share | 14.17 | 10.39 | 36.4% |
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Bestway Cement reports 5.9x increase in quarterly profits
October 28, 2020 (MLN): Bestway Cement Company Limited (BWCL) has witnessed 5.9x increase in net profits during 1QFY21 to Rs 1.79 billion, compared to Rs 300.9 million recorded in the same quarter previous year.
This reflected in company’s earnings per share which clocked in at Rs 3 as apposed to Rs 0.5 in 1QFY20, exhibiting a jump of 502% YoY.
The increase in company’s profitability linked to higher revenues which surged from Rs 15.47 billion to Rs 18.7 billion, depicting a growth of 21% YoY due to higher retention price.
As a result, the gross margins of the company jumped to 22% from 8% in the corresponding quarter last year.
On the expense side, the company observed 36% YoY decline in selling and distribution expenses, while its other expenses increased 29.5x. In addition, despite notable reduction in policy rate, company’s finance cost declined merely by 10% YoY which could likely be due to increase in borrowings.
Moreover, the company’s effective tax rate during the quarter stood at 22% compared to 16% which limited the upside in earnings.
In conjunction with the results, the company also announced interim cash dividend of Rs 3 per share i.e. 30% for the quarter mentioned above.
Financial Results for the Quarter ended September 30, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Gross turnover | 18,683,112 | 15,475,223 | 20.73% |
Less: Rebates and discounts | (756,101) | (545,443) | 38.62% |
Less: Sales tax and excise duty | (5,813,390) | (5,624,569) | 3.36% |
Net turnover | 12,113,621 | 9,305,211 | 30.18% |
Cost of Sales | (9,392,102) | (8,553,401) | 9.81% |
Gross profit | 2,721,519 | 751,810 | 262.00% |
Other income | 33,180 | 23,977 | 38.38% |
Selling and distribution expenses | (171,683) | (268,949) | -36.17% |
Administrative expenses | (130,359) | (129,086) | 0.99% |
Other expenses | (124,321) | (4,209) | 2853.69% |
Operating profit/(loss) | 2,328,336 | 373,543 | 523.31% |
Finance costs | (389,809) | (431,406) | -9.64% |
Share of profit of equity-accounted investees, net of tax | 357,677 | 417,524 | -14.33% |
Profit/(loss) before tax | 2,296,204 | 359,661 | 538.44% |
Income tax credit/(charge) | (502,502) | (58,663) | 756.59% |
Profit for the period | 1,793,702 | 300,998 | 495.92% |
Earnings per share - basis and diluted (Rupees) | 3.01 | 0.50 | 502.00% |
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