KARACHI: Indus Motor Company Limited on Friday said its net profit for the quarter ended December 31, 2020 increased by a staggering 200 percent to Rs2.95 billion from Rs985.75 million made in the same period last year, owing to a surge in sales.
The earnings per share (EPS) for the quarter turned out Rs37.6 as against Rs12.54 recorded in the same period last year. Along with the results came a cash dividend of Rs25/share, in addition to interim dividend of Rs12/share already paid to the shareholders.
Sales revenue during the period increased 106 percent to Rs45.45 billion as compared to Rs22.05 billion in the corresponding period last year.
“This is primarily owing to surge in sale of cars by 93 percent during 2QFY21 i.e. 14,424 units compared with 7,468 units, previously,” an analyst at Arif Habib Limited said.
“For the half year ended December 31, 2020, net sales increased 85 percent to Rs79.6 billion attributable to volumetric growth of 84 percent to 26,139 units (Yaris 12,845 units, Corolla 8,427 units, Fortuner 1,247 units, Hilux 3,620 units) vs. 14,175 units (Corolla 11,742 units, Fortuner 552 units, Hilux 1,881 units) in 1HFY20.”
Gross margins settled at 8.19 percent in the quarter, up by 22bps due to rupee appreciation, which wiped off the impact of higher steel prices together with change in sales mix from low margin car to high margin vehicles.
Other income increased 157 percent to Rs1.36 billion on account of significant jump in short term investment (government securities), and cash and bank balances.
For 1HFY21, the carmaker posted a net profit of Rs4.8 billion (EPS: Rs61.08) compared with Rs2.3 billion (EPS: Rs29.32) in the same last half year.
PPL quarterly profit grows 16.3pc
Pakistan Petroleum Limited (PPL) announced its net profit for quarter ended December 31, 2020 increased 16.7 percent to Rs11.78 billion compared to Rs10.096 billion in the same months of the last year.
The EPS for the quarter came out at Rs4.3 as against Rs3.7 recorded in the same period last year. The company also gave out a cash dividend of Rs1.5/share.
Sales revenue during the period decreased 16.49 percent to Rs36.49 billion as compared to Rs43.75 billion in the corresponding period last year.
“Revenues declined due to drop in oil and gas production by 2 percent and 1 percent, respectively, and slide in oil prices by 33 percent,” an analyst at Arif Habib Limited said.
“Topline during first half declined 12 percent settling at Rs75.539 billion on the back of drop in Sui wellhead price by 8 percent, 1 percent drop in gas production, and 32 percent fall in oil prices. Meanwhile, oil production remained stable in 1HFY21.”
The exploration costs come out to be Rs972.8 million in 2QFY21 amid absence of dry wells during the quarter against two dry wells (Noah X-1 and Talagang X-1) in same period last year. Other income in 2QFY21 arrived at Rs1.11 billion against Rs1.6 billion previously, tumbling 30 percent, attributable to a fall in income from loans and bank deposits, owing to lower interest rates.
For 1HFY21, PPL posted a net profit of Rs26.105 billion (EPS: Rs9.59) compared with Rs24.44 billion (EPS: Rs8.98) in the same last half year.
SCB’s full-year profit drops 18pc
Standard Chartered Bank (SCB) said its profit for the year ended December 31, 2020 fell 18 percent to Rs13.13 billion (EPS: Rs3.39), as compared to Rs16.01 billion posted in same period last year.
The bank also announced a final cash dividend of Rs. 2.75/share (27.5 percent) during the year.
The net interest income of SCBPL witnessed a 0.17 percent decline, whereas non-interest income saw a 17.54 percent growth.
As a result, the total income of the bank grew by 4.77 percent.
On the other hand, the total non-interest expenses grew by 4.11 percent, owing to higher expenses and workers’ welfare fund. The bank also paid provisioning charges of Rs. 4.9 billion during the year.
The bank said overall revenue grew 5 percent and client revenue increased by 15 percent year-on-year despite significant reduction in interest rates and economic uncertainty due to the pandemic.
Costs remained well managed and increased by only 4 percent year-on-year.
The bank continued to follow a prudent risk approach and booked loan impairment charge of Rs4.9 billion. “The risk environment remains heightened and we continue to monitor the portfolio given uncertainties surrounding COVID 19,” it said in its statement.
Hubco 2Q profit powers up 48.5pc
Hub Power Company (HUBC) said its profit for the quarter ended December 31, 2020 increased 48.5 percent to Rs8.44 billion, from Rs5.68 billion recorded in the corresponding period of last year.
The EPS for the quarter clocked in at Rs6.32 as against Rs4.23 recorded in the same period last year.
The company also declared a cash dividend of Rs3/share, which is in addition to interim dividend of Rs4/share already paid to the shareholders.
“We attribute this surge in earnings to 3 percent rupee depreciation, 40 percent reduction in financing cost due to lower interest rates, and better liquidity, and increased profit realisation from CPHGC during the quarter,” Muhammad Ahmed at Insight Securities said.
Sales revenue during the period increased marginally to Rs10.99 billion as compared to Rs10.57 billion in the corresponding period last year. “Sales increased due to a 12 percent increase in dispatches to 162 GWh (Hub Plant: 0GWh, Narowal Plant: 33GWh, 7 percent Load Factor; Laraib: 129GWh, 70 percent Load Factor),” an analyst at Arif Habib Limited said.
For 1HFY21, HUBC posted a net profit of Rs16.88 billion translating into EPS of Rs12.6 compared with the profit of Rs11.5 billion and EPS of Rs8.52 in the same period last year.
Nestlé nets Rs8.88 billion in CY20
Nestlé Pakistan posted a profit of Rs8.88 billion (EPS: Rs195.91) for the year ended December 31, 2020, compared to Rs7.3 billion (EPS: Rs167.12) earned a year earlier.
The company announced a cash dividend of Rs61/share, in addition to interim cash dividend of Rs133/share, already paid to shareholders.
The company in its statement said it posted a revenue of Rs118.8 billion for the period under review, which was 2.4 percent higher than 2019.
Despite the unprecedented situation caused by the pandemic, the company was able to grow the revenue through undisrupted supply and availability of products, innovation and renovation initiatives, numeric distribution expansion and investments behind the brands, it said.
“The year 2020 witnessed the COVID-19 pandemic which had a profound impact across the globe as well as in Pakistan.
In response to the pandemic, Nestlé Pakistan stepped up its commitment to vulnerable communities by donating 4 million servings of fortified products to meet the nutritional needs of both affectees and frontline workers during these times,” the company said.
