Kapco posts profits

KARACHI: Kot Addu Power Company (Kapco) posted 27 percent rise in FY15 profits, beating expectations because of increased efficiency and higher load factor, a company statement said on Friday.
The power producer posted a net profit of Rs9.798 billion for the year ended June 30, 2015 as compared to Rs7.729 billion last year.
Earnings per share clocked in at Rs11.13 in FY15 as against Rs8.78 last year. Kapco also declared a final cash dividend of Rs4.75 per share, which is in addition to the interim dividend of Rs4 already paid to the shareholders.
Yousaf Rehman at Global Securities said the growth in earnings largely emanated from the absence of major overhauls, improved efficiency post-overhauls and a higher load factor.
“Earnings surged by 17 percent in the fourth quarter because of a significantly higher load factor and efficiency gains post-LNG provision. Potential growth in earnings; however, was marred by the imposition of super tax,” Rehman added.
Despite a higher load factor, sales revenues of the company fell by 10 percent to Rs101.48 billion during FY15 because of a decline in the international oil prices, causing domestic petroleum and energy prices to follow the suit.
Kapco’s gross profits increased 24 percent to Rs15.14 billion during FY15.
"The absence of major overhaul expenditures and improved plant efficiency benefitted profitability.
In the fourth quarter gross profits surged 37 percent because of significant efficiency gains on account of the LNG-based generation,” Rehman said.
Analysts believe the company would continue to benefit from efficiency gains and a higher load factor post-LNG provision. Moreover, weakening rupee against the US dollar would also allow Kapco’s bottom-line to grow, going forward.
Indus Motor registers 80pc increase in net profit
Indus Motor Company Ltd (IMC) announced a net profit after tax of Rs 9.1 billion an increase of 80 percent for FY 2014-15 against Rs 3.9 billion profit posted for last fiscal year.
The Board of Directors of Indus Motor Company Ltd, met on Friday to review the company’s financial and operating performance for the year ended June 30, said a statement.
The improving economic environment, driven by the government efforts provided much needed boost to the entire industry, enabling the company to post record gross sales revenue of Rs 116 billion, up 70 percent compared to Rs 69 billion for the same period last year.
The surge in the after tax profitability is mainly attributed to increased sales volume of additional 22,917 units, improvement in margins after years of erosion and Kaizen initiatives aimed at improving operational efficiency, work processes, strategic sourcing of supplies and cost reduction in general.
The combined sales of Toyota CKD and CBU vehicles set a new annual record of 57,387 units for the company. The record sales volume achieved during the year resulted in a 32 percent market share for FY 2014-15.
Benefiting from strong demand generated by the new 11th generation Toyota Corolla launched in July 2014, the company outperformed and stayed well ahead of competition throughout the year, clocking in 51,398 units.
The combined sales of Hilux Light Commercial Vehicle grew seven percent, to 4,823 units compared to 4,520 units sold during the same period last year.
In order to fulfil market demand and reduce delivery time cycle, the company operated its manufacturing facilities at full capacity throughout the year undertaking overtime and working off Saturdays to minimize the impact of time lag on customers.
This enabled the company to achieve a new annual production record of 56,888 units during the FY 2014-15.
The company achieved a return on equity of 38 percent for the FY 2014-15. Based on the results, the BoDs announced a final dividend of Rs 40 per share, making the total payout of Rs 80 per share. Last year, Rs 29.50 per share was paid to the shareholders.
In the 25 years since the incorporation, IMC’s contribution to the national exchequer stands around Rs 250 billion.
Syed Khurram Mohiuddin auto analyst at Taurus Research said that on a sequential basis, net earnings declined by 18 percent quarter on quarter, on the back of two percent lower sales of corolla, 60bps reduction in gross margins and imposition of super tax.

Bank of Punjab earns profit of Rs1.423 billion
The Bank of Punjab has posted a net profit of Rs1.423 billion for the quarter ended June 30, 2015, up 54 percent as compared to Rs921.234 million last year.
The earnings per share (EPS) clocked in at 92 paisas in the quarter under review as compared to 70 paisas a year ago.
The bank did not announce any payouts along with the June earnings.
The jump in earnings can be attributed to capital gains of Rs1.736 billion during the quarter ended June 30, 2015, pushing the bank’s non-interest income to Rs2.426 billion, which is more than four times higher than Rs450.666 million last year.
The net interest income stood at Rs1.573 billion as compared to Rs2.555 billion last year. For the half-year ended June 30, 2015, the Bank of Punjab posted a net profit of Rs2.733 billion, translating into EPS of Rs1.76.