Kot Addu Power Company (Kapco) has announced a net profit of Rs5.296 billion for the quarter ended December 31, 2020, which is 20.9 percent lower than the profit of Rs6.69 billion recorded in the same quarter last year.
The EPS clocked in at Rs6.02 compared with EPS of Rs7.6 in the same period of the previous year. Kapco did not announce any interim cash dividend. Taurus Research in its report said, “True up income (difference between the revenue billed and the revenue collected in rupees due to depreciation of rupee against USD) decreased due to lesser collection of overdue receivables in this quarter. Nevertheless, collections are expected to improve in the coming quarters.”
Sales revenues in the quarter under review stood at Rs10.67 billion, up 17.24 percent from Rs9.10 billion in the corresponding quarter the previous year.
An analyst at Arif Habib Limited said, “During Q2FY21, sales went up due to higher dispatches (320GWh; load factor 11 percent). However, RLNG and furnace oil prices remained low in Q2FY21 compared to the same period last year.”
The finance cost declined a massive 70.12 percent to Rs735.33 million in Q2 compared with Rs2.46 billion previously due to lower interest rate regime. For the half-year ended December 31, 2020, KAPCO posted a net profit of Rs11.49 billion translating into EPS of Rs13.06 compared with the profit of Rs11.7 billion and EPS of Rs13.3 in the corresponding period the previous year.
“During 1HFY21, sales went down by 23 percent due to 13 percent decline in dispatches to 1,991 GWh vs 2,277 GWh during same period last year,” Arif Habib Limited noted.
Millat Tractors profit jumps to Rs1.65bln
Millat Tractors Limited (MTL) has announced a net profit of Rs1.65 billion for the quarter ended December 31, 2020, which is multiple times higher than the profit of Rs318.9 million recorded in the corresponding quarter of the previous year.
The company’s EPS clocked in at Rs33.13 compared with EPS of Rs5.86 in the same period of the previous year. Result is accompanied by cash dividend of Rs50/share and 12.5 percent bonus shares entitlement.
Analyst Muhamad Ahmed at Insight Securities said, “We attribute this surge in earnings to 1.8x increase in tractor sales amid better farmer agronomics, uptick in gross margins, lesser financial charges, courtesy of lower interest rates and better working capital management.”
Revenues for the quarter under review stood at Rs10.46 billion, up 106 percent from Rs5.04 billion recorded during the same quarter last fiscal.
MTL sold 8,313 tractors during the quarter under review as compared to 4,399 tractors in the same quarter the previous year.
Finance costs in Q2FY21 declined 80.4 percent to Rs27.07 million compared with Rs138.55 million in Q2FY20 due to lower interest rates.
For the half-year ended December 31, 2020, MTL posted a profit of Rs2.94 billion translating into EPS of Rs59.06 compared with the profit of Rs748.09 million and EPS of Rs15.01 in the corresponding period the previous year.
DG Khan Cement profit spikes 160pc in Q2FY21
DG Khan Cement (DGKC) has announced a net profit of Rs1.305 billion for the quarter ended December 31, 2020, which is 160 percent higher than the profit of Rs500.7 million recorded in the corresponding period of the previous year.
The EPS clocked in at Rs2.98 compared with EPS of Rs1.14 in the same period of previous year. The company did not announce any payouts.
Analyst Saad hanif at Insight Securities said, “The result is above our expectations, mainly due to higher than anticipated gross margins.”
Sales revenue for the quarter under review stood at Rs12.32 billion, down 4.15 percent from Rs12.857 billion recorded during the same quarter the previous year.
“During Q2FY21, revenues decreased by 4.0 percent, mainly because of 4.0 percent drop in dispatches. Gross margins increased by 800bps to clock in at 21.2 percent vs 13.2 percent previously, which can be attributed to better retention prices.”
Finance costs in Q2FY21 declined 39.6 percent to Rs805.72 million compared with Rs1.33 billion in Q2FY20 due to lower interest rates.
Company also decided to evaluate capacity of new cement line ranging between 9,000 tpd to 12,000 tpd.
For the half-year ended December 31, 2020, DGKC posted a profit of Rs1.012 billion translating into EPS of Rs2.31 compared with the loss of Rs946.03 million and loss per share (LPS) of Rs2.16 in the corresponding period the previous year. “During 1HFY21, revenue rose 5.0 percent led by higher retention prices as dispatches remained stagnant (local off-take dipped by 4 percent to 2.8 million tons),” a report issued by Arif Habib Limited noted.
FCCL profits soar nine-fold in Q2
Fauji Cement Company Limited (FCCL) has announced a net profit of Rs905.24 million for the quarter ended December 31, 2020, which is almost nine times higher than the profit of Rs189.36 million recorded in the corresponding period of the previous year.
EPS clocked in at Re0.66 compared with EPS of Re0.14 in the same period of the previous year. The company did not announce any payouts.
“The results came in above from our expectations, mainly because of higher than anticipated margins,” Saad Hanif at Insight Securities said.
Sales revenue for the quarter under review stood at Rs6.109 billion, down 15 percent from Rs5.314 billion recorded in the same period of the previous year.
“During Q2FY21, net sales increased by 15 percent despite 3.8 percent drop in dispatches, thanks to 20 percent increase in retention prices. Likewise, gross margins expanded by 17.7 percent to clock in at
25 percent vs 7.4 percent previously,” Saad said.
Finance costs in the quarter under review declined 36.7 percent to Rs33 million compared with Rs52.2 million in Q2FY20 due to lower interest rates.
For the half-year ended December 31, 2020, FCCL posted a profit of Rs1.6 billion translating into EPS of Rs1.16 compared with the profit of Rs482.18 million and EPS of Re0.35 in the corresponding period the previous year.
Company also announced to set up a greenfield cement manufacturing plant of 2.05 MT/annum at Dera Ghazi Khan. The estimated time of project completion is 2.5 years, while targeted financial close is March 31, 2021.