Engro Corp profit jumps 148pc to Rs14.77bln

KARACHI: Engro Corporation profit jumped 148 percent to Rs14.77 billion translating into earnings per share (EPS) of Rs14.47 for the quarter ended March 31, 2021, as against profit of Rs5.94 billion and EPS of Rs5.76 in the same period last year.

The company also declared interim cash dividend of Rs12/share along with corporate results.

Engro’s consolidated revenue grew by 58 percent from Rs44.977 billion during Q1 2020 to Rs70.866 billion in Q1 2021.

Domestic market witnessed strong agricultural sector performance in Q1 as farm economics continued to improve, driven by better farm output prices and enhanced support pricing. The company produced 523KT of Urea vs 572KT for the comparative period due to a turnaround in one of the plants. The company delivered quarterly Urea sales of 582KT vs 169KT and Phosphate sales of 74KT vs 36KT during the same period last year.

During Q1 2021, international prices of PVC rose to an unprecedented level of $1,670 per ton as the winter storm in the US drove multiple unplanned shutdowns and forced majority of the PVC capacity offline. Furthermore, the company announced commercial operations of the new PVC plant on March 1, 2021, which increased the total capacity to 295,000 tons per annum.

Engro continued to invest and progress in its connectivity vertical through Engro Enfrashare strengthening its footprint to a portfolio size of 1,577 operational sites, while hosting 1,681 tenancies (1,362 tenancies in 2020) and catering to all Mobile Network Operators (MNOs) in Pakistan. This portfolio expansion has led to a significant increase in the market share as an Independent TowerCo from 41 percent in 2020 to 44 percent during Q1 2021.

Mining and power plant operations at Thar continued smoothly, with over a million tons of coal being supplied by the mine. The plant remained fully operational and achieved 81 percent availability. Meanwhile, the expansion of the mine at Thar to increase output to 7.8 million tons per annum is underway. Profitability of both the LNG and chemicals terminal remained healthy for the current quarter.

UBL profit up 47pc to Rs7.4bln

United Bank Limited (UBL) net profit increased 47 percent to Rs7.4 billion translating into EPS of Rs6.05 for the quarter ended March 31, 2021 as against profit of Rs5.05 billion and EPS of Rs4.13 in the same period last year.

“The rise in earnings is primarily due to a jump in capital gains on securities and a reduction in provisioning,” an analyst at Arif Habib Limited said.

The company also declared interim cash dividend of Rs4/share along with corporate results.

Net interest income of the bank settled at Rs17.505 billion during Q1CY21, decreasing two percent, attributable to significant rate cuts of 625bps by the central bank during the year, as complete asset re-pricing has come through.

Non-interest income clocked in at Rs5.78 billion for the quarter under review, up 24 percent from Rs4.66 billion in the same period last year.

Provisioning expenses clocked in much lower than expected, at Rs376 million during Q1CY21, down 90 percent.

The bank continued its strict control on operating expenditure, which increased 3.0 percent.

Bank Alfalah announces Rs3.471bln Q1 profit

Bank Alfalah Limited profit after tax went up 23 percent to Rs3.471 billion in the quarter ended march 31, 2021, translating into EPS of Rs1.95, a bourse filing said.

The bank earned Rs2.281 billion with EPS of Rs1.59 during the quarter ended march 31, 2020. The results reflect strong underlying performance across businesses, supported by the improving economy. Lower NPL charge also eased pressure on the profitability of the bank.

Asset quality remained strong, denoted by non-performing loans ratio of 4.18 percent at end March 2021, marginally lower than December end. Absolute non-performing loans reduced by Rs506 million during the first three months.

Revenue was marginally down from last year. The key reason being sharp decline of 625bps in the discount rate leading to 12.3 percent drop in net markup income; however, increase in earning assets and deposits supported revenue.

Non-markup income stood at Rs3.833 billion, increasing by 41.5 percent, with strong contribution from capital gains and fee income.

Non-markup expenses were 4.5 percent higher compared to the same period last year, driven largely by higher compensation costs, the full year impact of new branches opened last year along with expenses attributable to new initiatives.

The cost to income ratio of the bank stood at 59.7 percent.

“Focus remains on re-profiling its deposit base. Total deposits stood at Rs913.213 billion, 20.9 percent up year on year and 3.6 percent higher than December 2020,” a statement said. Current deposits are the main driver, up 25.1 percent year on year and 5.9 percent since December 2020.

Shell Pakistan posts Rs1.9bln Q1 profit

Shell Pakistan announced net profit of Rs1.948 billion for the first quarter of the calendar year, translating into EPS of Rs11.17, a bourse filing said.

The company posted a loss of Rs4.332 billion with loss per share of Rs28.03 during the first quarter of 2020.

“Q1 saw a significant recovery compared to a very tough last year. The encouraging turnaround is mainly driven by continued focus on strategic priorities and operational excellence. The success was supported by increasing international oil prices coupled with the appreciation of the rupee against the US dollar by five percent during the quarter,” a company statement said.

During the quarter, the company continued to grow its network by adding seven new sites.

Shell Pakistan decided to issue right shares to ensure a healthy financial and cash position, to meet working capital requirements and to enhance shareholders’ value. The rights process was completed in Q1 2021.

The right issue was fully subscribed by shareholders and the allotment of shares was made on March 2, 2021. Shell Petroleum Company Ltd invested Rs9 billion, increasing its shares in Shell Pakistan from 76.11 to 77.42 percent.

PSMC announces Rs777.85mln profit

Pak Suzuki Motor Company (PSMC) has announced a net profit of Rs777.85 million translating into earnings per share (EPS) of Rs9.45 for the quarter ended March 31, 2021, as against loss of Rs941.11 million in the same period last year.

PSMC result stood lower than market expectations due to lower than expected gross margins for the period.

“Our channel checks reveal the spike in the cost of sales is attributable to elevated freight charges on CKD shipments as well as procurement at higher levels of USD-PKR parity,” an analyst at KASB Securities said.

The sales revenue for the period clocked in at Rs36.09 billion, up 103.4 percent from Rs17.74 billion in the corresponding period last year. The company sold 18,249 units as compared to 20,482 units in the same period last year.

Administrative expenses stood 15 percent higher likely from the increased workforce. Distribution costs rose in line with sales growth.

Moreover, other income saw a healthy 11.6 times rise to Rs619 million for the quarter. “This is attributable to two factors. Firstly, the company has likely booked exchange gains on USD and JPY dominated payables. Secondly, the company has earned income on cash balances available on its balance sheet,” an analyst said.