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- Friday, August 23, 2013 - From Print Edition


Engro earns profit of Rs3.4bn


KARACHI: Engro Corporation (Engro) on Thursday reported profit-after-tax of Rs3.4 billion (earnings per share of Rs6.73) for the first-half of 2013 as compared to a loss of Rs0.3 billion (loss per share of 67 paisas) posted in the same period last fiscal year.


For the second quarter of 2013, the company reported profit-after-tax of Rs1.7 billion (EPS of Rs3.24), up by 4.4 times on year-on-year basis but lower by seven percent on quarter-on-quarter basis.


Farid Aliani, an analyst at BMA Capital, said the result was below-the-expectations mainly because the company bore higher-than-anticipated financial charges in the second quarter of 2013, which were lower by eight percent on year-on-year basis but higher by 24 percent on quarter-on-quarter basis to Rs3.8 billion, up by Rs0.7 billion from the first quarter of 2013.


In the first-half of 2013, the turnaround in earnings on year-on-year basis was driven solely by 57 percent higher urea sales by the conglomerate’s fertiliser business to 0.62 million tons. Engro Fertilizer contributed a profit of Rs1.4 billion (Rs2.8 per share) to Engro - in contrast to cutoff a significant Rs1.7 billion from the parent company in the same period last fiscal year.


Engro Foods’ first-half earnings growth was restricted to mere nine percent on year-on-year basis as the dairy volumetric sales declined by 13 percent on year-on-year basis. This 88 percent held subsidiary contributed Rs1.9 per share to Engro’s earnings.


Better PVC volumetric sales and reduced finance costs (down by 41 percent on year-on-year basis) helped Engro Polymer (EPCL) posts 7.1 times year-on-year higher earnings to Rs425 million. This translates into Rs0.5 per share earnings contribution to Engro as compared to a marginal Rs0.1 per share in the same period last fiscal year.


HBL announces cash dividend


Habib Bank Limited (HBL) announced its second quarter 2013 result on Thursday with the first interim cash dividend of Rs4 per share, a bank statement said.


HBL posted a profit-after-tax of Rs4.9 billion (earnings per share of Rs3.64), down by nine percent on year-on-year basis, however; it went up by six percent on quarter-on-quarter basis.


First-half of 2013 earnings clocked in at Rs9.4 billion (EPS of Rs7.08). The result came in line with the EPS expectation of Rs7, an analyst at JS Global said.


Key highlights of the result were 10 percent year-on-year decline in the net interest income and one percent year-on-year fall in noninterest income due to lower income from dealing in foreign currencies and 10 percent year-on-year increase in operating expenditures, which dented the profitability of the bank.


However, 41 percent year-on-year decline in cumulative provisions somewhat supported the bottom line.


NBP posts profit of Rs6 billion


The National Bank of Pakistan (NBP) posted unconsolidated profit of Rs6 billion (earnings per share of Rs2.83 against the EPS of Rs3.9 last fiscal year) for the first-half of the calendar year 2013, registering a decline of 27 percent on year-on-year basis and lower than the market expectations.


The decline is due to higher provisioning and lower net interest income (NII), an analyst at Sherman Securities said. However, higher noninterest income and lower tax partially offset the negative impact of decline in the net interest income and provisioning.


Despite reduction of approximately 250 basis points in the average yield on assets (T-bills, KIBOR) the noninterest income declined by only five percent on year-on-year basis. Noninterest income remained higher due to the capital gains on securities (booming stock market) and fee income.


In the second quarter of 2013, the National Bank of Pakistan posted an EPS of Rs1.41, which is almost similar to the previous quarter (first quarter of 2013).