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General Tyre’s profitability weakens on lower auto sales
February 20, 2020 (MLN): General Tyre and Rubber Co. (GTYR) has announced its financial results for the half-year ended December 31. 2019, as per which, the company has posted its net profits of Rs 29.3 million i.e., lower by 68% YoY against Rs 91 million of last year.
The decline in profitability of the company was mainly attributed to the lower auto sales and PKR depreciation.
During the period, the company’s revenue declined by 9% YoY to Rs 4.56 billion but more than a proportionate decrease in the cost of sales caused gross profits to increase marginally by 1% YoY to Rs 752 million.
On the cost front, the administrative expenses and other expenses plunged by 13% YoY and 93% YoY respectively whereas distribution expenses jump by only 2% YoY.
More notably, the colossal increase in finance cost by 93% YoY, from Rs 222 million to Rs 429million damaged the company’s performance owing to higher borrowings with higher interest rates.
GTRL’s basic and diluted earnings per share have been reported at Rs 0.24 per share while those recorded last year were Rs 0.75 per share.
Financial Results for the half-year ended December 31, 2019 (Rupees in '000) | |||
|---|---|---|---|
| Dec-19 | Dec-18 | % change |
Sales-net | 4,564,320 | 5,016,091 | -9% |
Cost of sales | (3,811,685) | (4,274,482) | -11% |
Gross profit | 752,635 | 741,609 | 1% |
Administrative expenses | (137,699) | (158,250) | -13% |
Distribution expenses | (204,955) | (201,443) | 2% |
Other income | 68,548 | 38,080 | 80% |
Other expenses | (4,746) | (71,724) | -93% |
Profit from Operations | 473,783 | 348,272 | 36% |
Finance Cost | (429,729) | (222,295) | 93% |
| 44,054 | 125,977 | -65% |
Share of (loss)/profit of an associated company | (589) | 3,439 |
|
Profit before taxation | 43,465 | 129,416 | -66% |
Taxation | (14,175) | (38,303) | -63% |
Profit after taxation | 29,290 | 91,113 | -68% |
Earnings per share-basic and diluted | 0.24 | 0.75 | -68% |
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Reza Baqir shares his two cents on Pakistan’s economy...
February 20, 2020 (MLN): Governor of State Bank of Pakistan, Dr. Raza Baqir, on Thursday shared his views on Pakistan’s economy as well as future outlook, at the CEO Summit.
During his speech, Raza Baqir told the attendees that inflation in Pakistan will move down in the coming months, which in turn will have a trickle-down impact on the industrial sector. Furthermore, he said that the fall in inflation might lead to a cut in interest rates.
He said that the economic indicators, over a year ago, were on a downhill course, but the situation has gotten better ever since with the difference being quite apparent. Elaborating further on this, he said that the exchange rate has become stable and the foreign exchange reserves are at a comfortable level.
He also shed some light on the performance of stock markets, which according to him, have been witnessing stability.
However, he accepted that tackling problems pertaining to the current account deficit has been a great challenge. He told the spectators that the overall exports of the country, as compared to the GDP, were less than 10 percent.
Slamming the slow growth of Pakistan, the Governor stated that other third-world countries have a much better pace than ours.
Nonetheless, he said that several incentives were in the pipeline to boost exports in Pakistan. One of these incentives may include the launch of Export schemes with funding of Rs. 200 billion.
For small and medium business, allocation of Rs 500 billion has been approved, that too o reduced interest rates. However, to avail this facility, the small business houses will have to get themselves registered first.
To clear the suspicions and skepticism of some people, he stated that Policy Rate is decided by the Monetary Policy Committee, with no interference from the government.
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Ms Erum Rahim appointed as CEO of GSK
February 20, 2020 (MLN): GlaxoSmithKline (Pak) Ltd (GLAXO) has informed that Mr Aziz ul Haq has submitted his resignation as Chief Executive Officer. The board of Directors has accepted his resignation with effect from March 01, 2020, according to notice issued to PSX.
In a meeting, the BoD has appointed Ms Erum Shakir Rahim as CEO of the company with effect from March 01, 2020who presently serve as General Manager, GSK Indonesia Pharma Emerging Markets.
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