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State Bank’s Forex Reserves Increase by USD 54.90 Million

Oct 29, 2020 (MLN): Pakistan's Forex Reserves decreased by USD 5.10 Million or 0.03% and the total liquid foreign reserves held by the country stood at USD 19,296.50 Million on Oct 23, 2020.

According to data published by the State Bank of Pakistan (SBP) its reserves increased by USD 54.90 Million .

Summary of Holding and Weekly Change

Foreign reserves held byOct 23, 2020Oct 16, 2020Change% Change
State Bank of Pakistan12,121.5012,066.6054.900.45%
Net Foreign Reserves Held by Banks7,175.007,235.00-60.00-0.83%
Total Liquid Foreign Reserves19,296.5019,301.60-5.10-0.03%

Amount in USD Million

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Nishat Chunian Ltd’s earnings grow over two-fold during 1QFY21

October 29, 2020 (MLN): Nishat Chunian Limited has disclosed its financial results for 1QFY21 ended September 2020 wherein the company reported its net profit of Rs 480 million (EPS: Rs 2), showing 2.7 times YoY growth against net profits of Rs 173 million (EPS: 0.72) in the same period of last fiscal year.

As per the financial statement, as a glut of demand for value-added textile business has come forth with the retail sector opening up worldwide post-COVID-19 lockdown, NCL’s sales revenue went up by 25.04% YoY. Moreover, the exports for this quarter were also quite impressive.  As a result, the gross profits of the company increased by 7% YoY despite an increase in the cost of sales by 27.67% YoY.

On the cost side, the major highlight is the increase in its major expense heads as distribution cost jumped by 24% YoY. While administrative cost and other expenses decreased by 12% and 38%, YoY, respectively.

The increase in earnings is primarily attributed to 2.3 times YoY increase in other income, standing at Rs 206 million during the period under review.

Meanwhile, a 26% decline in finance cost to Rs 459 million also contributed to the bottom line.

 Profit and Loss Statement for the first quarter ended September 30th, 2020 (Rupees)

 

Sep-20

Sep-19

% Change

Sales

 11,939,510,198

 9,548,553,675

25.04%

Cost of Sales

 (10,663,898,753)

 (8,352,899,217)

27.67%

Gross Profit

 1,275,611,445

 1,195,654,458

6.69%

Distribution Cost

 (282,699,621)

 (227,407,462)

24.31%

Administrative expenses

 (68,157,633)

 (77,597,760)

-12.17%

Other operating expenses

 (41,955,202)

 (67,331,839)

-37.69%

Other operating income

 206,354,426

 88,540,628

133.06%

Finance cost

 (459,007,942)

 (618,889,628)

-25.83%

Profit before taxation

 630,145,473

 292,968,397

115.09%

Taxation

 (149,833,784)

 (119,701,125)

25.17%

Profit after taxation

 480,311,689

 173,267,272

177.21%

Earnings per share - basic and diluted (Rupees)

 2.00

 0.72

177.78%

 

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ECC approves PM’s Package for Rabi Crops

October 29, 2020: Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the special meeting of the ECC today to approve the “PM’s Package for Rabi Crops-Specially wheat".

In order to give the incentives to the farmers for the upcoming Rabi season, the Federal Cabinet in its meeting held on 27-10-2020 constituted a special committee to design the package to reduce the input cost for the farmers with the special intent to increase the production of wheat in the country.

According to the package Rs.1000/per 50 kg bag will be given as subsidy on fertilizers; DAP, P and K fertilizers. The Federal and Provincial government will share the subsidy in 70% and 30% ratio. On weedicides at Rs. 250 per acre and fungicides at Rs.150 will be given by the Federal Government as subsidy.

The provinces will distribute the subsidy in their already prevalent manner but will be responsible for ensuring transparency. The Federal funds for the subsidy will be directly disbursed to the provinces by the Finance Division on the basis of their share, keeping in view their system strength and overall outreach. 

The Ministry of National Food Security would examine the provinces’ demand for funds and after its recommendation Finance Division shall transfer the funds to the provinces. It was also decided that the provinces will expand, improve and up-grade their subsidy disbursement systems. The package will be presented in the next Cabinet meeting on Tuesday for approval by the Federal Cabinet.

Press Release

Closing Bell: When the levee breaks

October 29, 2020 (MNL): The KSE-100 index ended the trading session on Thursday with a 1,298.86 point or 3.15 percent decline to close at 39,888.

The benchmark index took cues from international markets, which sank after a meltdown in New York and Europe sparked by France reimposing a nationwide lockdown to battle a new wave of virus infections, with fears other major economies could follow suit.

The increase in the number of covid cases in Pakistan too played a major role in the performance of stock markets today. Moreover, the government has ordered all restaurants, malls, and shops to shut down at 10 p.m., which is hinting towards another imminent lockdown.

The stock markets were also impacted by the financial results of various companies that were announced today. OGDC, in particular, had a significant negative impact on the E&P sector after it announced a 14% decline in profitability to Rs 23.4 billion during the quarter ended September 30, 2020, from Rs 27.3 billion realized in 1QFY20.

The Index remained negative throughout the session touching an intraday low of 39,283.22

Of the 94 traded companies in the KSE100 Index 4 closed up 89 closed down, while 1 remained unchanged. Total volume traded for the index was 374.81 million shares.

Sector wise, the index was let down by Commercial Banks with 245 points, Oil & Gas Exploration Companies with 198 points, Fertilizer with 131 points, Cement with 105 points and Oil & Gas Marketing Companies with 98 points.

The most points taken off the index was by PPL which stripped the index of 67 points followed by ENGRO with 66 points, POL with 65 points, HUBC with 57 points and HBL with 56 points.

Sectors propping up the index were Tobacco with 6 points.

The most points added to the index was by PAKT with 12 points.

All Share Volume increased by 173.36 Million to 541.78 Million Shares. Market Cap decreased by Rs.209.65 Billion.

Total companies traded were 422 compared to 415 from the previous session. Of the scrips traded 47 closed up, 368 closed down while 7 remained unchanged.

Total trades increased by 37,616 to 175,930.

Value Traded increased by 5.19 Billion to Rs.20.34 Billion

CompanyVolume

Top Ten by Volume

Unity Foods60,515,500
Maple Leaf Cement Factory39,112,208
Pakistan International Bulk Terminal38,642,500
Hascol Petroleum34,492,530
Fauji Cement Company26,403,500
Power Cement24,716,000
TRG Pakistan15,622,000
Pakistan Refinery15,334,500
Shabbir Tiles & Ceramics14,873,500
K-Electric12,529,000

 

SectorVolume

Top Sector by Volume

Cement109,936,593
Vanaspati & Allied Industries60,587,800
Oil & Gas Marketing Companies42,427,477
Transport39,630,200
Commercial Banks38,819,619
Technology & Communication37,240,700
Power Generation & Distribution32,256,795
Refinery23,240,600
Engineering21,109,900
Glass & Ceramics17,952,500

 

 

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FCCL: Higher margins amid better retention prices improve earnings

October 29, 2020 (MLN): Fauji Cement Company Limited (FCCL) has posted 2.3x increase in net profits for 1QFY21 to Rs 695.58 million as opposed to the profits of Rs 292.8 million in the same quarter of last year.

The earnings per share of the company exhibited a jump of 142.8% YoY from Rs 0.2 to Rs 0.5 per share.

This outstanding jump in profitability is primarily attributed to higher than expected gross margins on the back of 18% YoY increase in local cement dispatches, and better cement retention prices.

 During the quarter, FCCL’s overall volume jumped to 0.8 mln tons, compared to 0.7 mln tons in the corresponding quarter last year, largely due to 20% YoY rise in local cement dispatches. As a result, company’s net turnover grew by 29.6% YoY. This takes the gross profits to Rs 1.18 billion from Rs 591.3 million, marking an upsurge of over 100% YoY.

Subsequently, the gross margins during the quarter witnessed a massive jump of 7ppts to 21% from 13.9% in 1QFY20.

On the expense side, Company’s selling and admin costs declined by 9% and 6% YoY respectively while its operating expenses rose significantly by 138% YoY. In addition, despite decline in interest rate company’s net financial charges increased by 42% YoY due to higher short-term debt.

On the tax front, company booked an affective tax rate of 27% which was same as in 1QFY20.

According to the report by Intermarket Securities, FCCL so far posted the highest gross margins among the North based producers besides BWCL. Also, the company has touched a utilization level of 97% and taken 7.2% of local share compared to their capacity share of 5% in 1QFY21.

Going forward, the company will continue to sell more than its capacity share, it added.

Profit and Loss Account for the Quarter ended September 30, 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Turnover - net

                       5,500,988

                       4,243,012

29.65%

Cost of Sales

                     (4,312,582)

                     (3,651,658)

18.10%

Gross Profit/ (loss)

                       1,188,406

                           591,354

100.96%

Selling and Distribution Cost

                           (47,536)

                           (52,332)

-9.16%

Administrative Expenses

                        (103,066)

                        (109,920)

-6.24%

Other Operating Expenses

                           (70,451)

                           (29,594)

138.06%

Other Income

                               8,561

                             16,069

-46.72%

Finance Cost

                           (29,659)

                           (27,773)

6.79%

Finance Income

                               9,860

                             13,824

-28.67%

Profit/(loss) before Taxation

                           956,115

                           401,628

138.06%

Taxation

                        (260,531)

                        (108,808)

139.44%

Profit/(loss) for the period

                           695,584

                           292,820

137.55%

Earnings/(loss) per Share - Basic and Diluted (Rs)

                                  0.51

                                  0.21

142.86%

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