Indus Motor profit surges 40 percent in Q1

KARACHI: Indus Motor Company Limited profit surges 40 percent to Rs1.845 billion for the quarter ended September 30, 2020 translating into EPS of Rs23.48, a bourse filing said.

The company earned Rs1.318 billion with EPS of Rs16.78, in the quarter ended last year. It announced interim cash dividend for the quarter ended September 30, 2020 at Rs12/share, which was equivalent to 120 percent.

Nabeem Dochki of Taurus Research said profits were lower than expected due to lower gross margins, which could be attributed to lower gross margins on the newly launched Toyota Yaris, that constituted 51 of total sales.

On a YoY basis, revenue increased 65%YoY, on the back of 75% higher sales volume & increase in selling prices. However, gross profit has not increased in line with revenue, depicting lower margins on Yaris, which was previously indicated by the management.

“Distribution and admin expenses have decreased 25 percent YoY, which can be attributed to lower marketing costs, which were higher last year in order to protect the market share.”

Other income increased 75 percent YoY, on the back of higher short-term investments. While on a QoQ basis it decreased 20 percent, despite higher investments, due to lower saving rate.

Indus Motor CEO Ali Asghar Jamali said, “We would like to appreciate our customers for their continued loyalty towards our products as well as acknowledging the tremendous and dedicated efforts of our staff, vendors, dealers, business partners and the entire Indus team during these challenging times.” He said the company looked forward towards continued support as it moved ahead with an expectation of the revival of economic activities and improved business activities in coming months.

The increase in turnover and profitability for the three-month period was mainly due to higher CKD and CBU volumes, and increased other income due to improved cash flows, however, due to the depreciation of rupee and absorption of costs, the gross margin of the company reduced to 6.7 percent against 9.7 percent in same period last year, the company said.

FFC profit up 30pc in Q3

Fauji Fertilizer Company (FFC) profit went up 30 percent Rs4.628 billion in the quarter ended September 30, with EPS of Rs3.64, a bourse filing said. The company booked Rs3.563 billion profit with EPS of Rs2.80 in the same quarter last year. FFC announced interim cash dividend for the half year ended September 30, 2020 at Rs2.55/share, which was equivalent to 25.50 percent. This is in addition to interim cash dividend already paid at Rs5.25/share, which was equivalent to 52.50 percent.

Finance cost dipped 53 percent to Rs363 million from Rs767 million, in the corresponding period earlier, whereas, other expenses gained 20 percent to Rs629 million from Rs527 million previously.

Sunny Kumar from Topline Securities said, “AP sales increased by 25 percent YoY to 93,000 tons in Q32020, while average prices declined by 3 percent YoY.” Moreover, effective tax rate clocked in at 29.9 percent in Q32020 versus 31.5 percent in Q32019, Kumar added.

HUBCO profit up 45pc in Q1

Hub Power Company (HUBCO) profit increased 45 percent to Rs8.441 billion for the first quarter ended September 30, 2020, translating into earnings per share (EPS) of Rs6.28, a bourse filing said on Wednesday. HUBCO earned Rs5.823 million with EPS of Rs4.29, in the corresponding quarter last fiscal. The company announced interim cash dividend for the quarter ended September 30, 2020 at Rs4/share, which was equivalent to 40 percent.

Brokerage Arif Habib Limited in its report said, “During Q1FY21, net sales witnessed an increase of 12 percent YoY to Rs15,794 million due to a 27 percent YoY rise in dispatches to 361GWh (Hub Plant: 37GWh, 1 percent load factor; Narowal Plant: 226GWh, 48 percent load factor; Laraib: 98GWh, 53 percent load factor).” During Q1FY21, HUBCO recognised share of profit from CPHGC of Rs3,482 million (Rs2.68/share), up by 86 percent YoY, the brokerage house added. Finance costs decreased by 38 percent YoY to Rs1,904 million. The decline in finance costs was led by lower interest rates.

BoP profit drops 3pc in Q1

Bank of Punjab (BoP) profit declined 3 percent to Rs2.150 billion for the quarter ended September 30, 2020 translating into EPS of Rs0.81, a bourse filing said. BoP earned Rs2.158 billion with EPS of Rs0.81, in the corresponding period last year. BOP did not announce any interim cash dividend for the quarter ended September 30, 2020.

Brokerage Arif Habib Limited in their report said hefty provisioning was booked once again this quarter - Rs2.4 billion during Q3CY20 (down 15 percent QoQ) taking total provisioning during 9MCY20 to Rs5.9 billion, up fourfold YoY.

Operating expenses saw a 4 percent QoQ uptick whilst being up 20 percent YoY during 9MCY20. Cost to income ratio stood at 45 percent during 9MCY20 against 47 percent the same period last year, the brokerage house added.

Byco quarterly profits fall 57pc

Byco Petroleum Pakistan Limited profit fell 57 percent to Rs286 million for the quarter ended September 30, 2020 translating into EPS of Re0.05, a bourse filing said.

Byco earned Rs668 million with EPS of Re0.13, in the same period last year. It did not announce any interim cash dividend for the quarter ended September 30, 2020. The company recorded a 23 percent decrease in gross sales to Rs48.4 billion from Rs62.9 billion in the same period last year, mainly due to a more than 30 period decrease in oil prices in the international markets.

Byco Petroleum reported a gross profit of Rs1.7 billion, down 18 percent from Rs2.08 billion last year. The decrease in profits was partly due to the positive impact of rupee appreciation on last year’s financial results, the company statement said.

Byco CEO Amir Abbassciy said the first quarter was a mixed period for Pakistan’s oil refining industry.

“The industry benefited from easing of lockdowns and lifting of travel restrictions, both at home and abroad, which helped stabilise international oil prices,” Abbassciy said in a statement.

As economic activity resumed, demand for petroleum products recovered in Pakistan. However, adverse weather conditions, particularly the torrential rains, disrupted business operations. Margins on high-speed diesel (HSD) weakened but premier motor gasoline (PMG) and furnace oil (FO) witnessed margin expansion.

Government of Pakistan has revised the petroleum products pricing formula for PMG and HSD, from once a month to a bi-monthly format from September 1, 2020. Byco Petroleum has exhibited its resilience to stand firm during tough market conditions and is focused on generating strong returns throughout economic cycles.

Soneri Bank’s profit spikes 49.56pc in 9-months

The Soneri Bank Limited posted a profit-after-tax of Rs1,811.30 million for the nine months period ended September 30, 2020, compared with Rs1,211.09 million during the corresponding last year, registering a growth of 49.56 percent.

The board of directors of the bank, in its 181st meeting held in Lahore, approved the Bank’s condensed interim financial statements for the nine months period ended September 30.

The EPS was recorded at Rs1.6430/share for the period under review, compared with Rs1.0985 during the corresponding period last year.

Profit before provisions and taxation for the period under review was reported at Rs4,393.01 million, indicating an impressive growth of 179.71 percent from Rs1,570.56 million.

The bank’s net advances portfolio stood at Rs187,242.79 million as of September 30, 2020, 8.62 percent lower than the year end 2019 level.

The non-performing advances to total advances ratio stands at 5.51 percent as of September 30 (December 2019: 5.13 percent), while specific coverage has improved to 74.92 percent (December 2019: 69.46 percent).

Net investments witnessed a volumetric increase of Rs52,818.42 million, or 29.83 percent, from the year-end position of Rs177,056.12 million, ending at Rs229,874.54 million during the nine months of the current fiscal year.