Sunday September 26, 2021

HBL half year profits up 18.7 percent to Rs18.029 billion

July 30, 2021

KARACHI: Habib Bank Limited (HBL) net profit increased 18.7 percent to Rs18.029 billion for the half-year ended June 30, 2021, translating into earnings per share (EPS) of Rs12.04, a bourse filing said on Thursday.

The bank earned Rs15.18 billion profit with EPS of Rs10.32 during the half year ended June 30, 2020. An interim cash dividend of Rs1.75/share was announce, that took 1H2021 cumulative dividend to Rs3.5/share.

Analyst Umair Naseer of Topline Securities in his note said, “Earnings of the bank came in higher than industry expectations driven by better than expected provisioning charge and improve fee income.”

Net interest income of the bank went up 2.8 percent to Rs64.864 billion in the 1H2021, from Rs63.075 billion in the same period last year. However, it declined 7.6 percent to Rs32.394 billion in Q2, from Rs35.061 billion in the same quarter last year. This was in line with estimates, as SBP had reduced policy rate.

“HBL’s total provisions were better than our estimates and clocked in at Rs1.8 billion in Q2 2021 versus Rs4.8 billion in Q2 2020,” the note said.

Fee and commission income also posted strong growth of 41 percent year on year to Rs5.9 billion, which remained higher than its historical average. Capital gains against sales of securities also clocked in at Rs1.7 billion in Q2 2021, down from Rs4.4 billion during the same period last year.

FFBL posts Rs1.879bln profit for Jan-Jun 2021

Fauji Fertilizer Bin Qasim Limited (FFBL) reported consolidated net profit of Rs1.879 billion during the first half of the current year with EPS of Rs1.29, a bourse filing said.

FFBL posted a loss of Rs3.222 billion with loss per share of Rs2.78 during the first half of last year. The company reported a net profit of Rs656.52 million for the quarter ended June 30, up against the losses of Rs321.82 billion the previous year.

EPS came in at 41 paisas/share, compared with a loss of 25 paisas/share last year.

The company reported other income at Rs1.49 billion against Rs488.91 million last year.

Net sales numbers climbed up 21 percent to Rs29.917 billion in the first half, from Rs24.782 billion in the same half last year.

Engro Fertilizers 1H profit rises 136pc

Engro Fertilizers consolidated net profit increased 136 percent to Rs10.509 billion for the half-year ended June 30, 2021, with EPS of Rs7.87, a bourse filing said.

The company posted a profit of Rs4.456 billion translating into EPS of Rs3.34 in the same half last year. An interim cash dividend for the second quarter ended June 30, 2021 was announced at Rs4/share, ie 40 percent. This was in addition to interim cash dividend already paid at Rs4/share, also 40 percent.

The company reported a net profit of Rs4.80 billion for the quarter ended June 30, up from Rs3.88 billion the previous year. EPS came in at Rs3.6/share for the quarter, compared with Rs2.91/share in the same quarter last year.

Net sales for the quarter fell to Rs25.91 billion, compared with Rs29.91 billion a year earlier.

However, the cost of sales was down to Rs16.06 billion from Rs19.52 billion last year. Other income increased to Rs533.55 million from Rs243.50 million. During this period, selling and distribution costs decreased, which helped the company post profits.

A report of Insight Securities said Nestle’s revenue decreased by 13 percent year on year and 12 percent quarter on quarter. “The decrease in revenue is attributable to lower urea off-take (down by 20 percent). Finance cost declined by 36 percent YoY, attributable to decline in borrowing cost and reduction in debt level,” it reported. However, on a QoQ basis, finance cost increased by 112 percent possibly due to higher short-term borrowings.

Nestle Pakistan profit up 49pc

Nestle Pakistan net profit increased 49 percent to Rs5.783 billion in the six month period ended June 30, 2021, translating into EPS of Rs127.53, a notice to the Pakistan Stock Exchange said.

The company earned Rs3.876 billion with EPS of Rs85.47 in the six-month period ended June 30, 2020. Nestle Pakistan announced an interim cash dividend of Rs115/share, ie 1,150 percent, the notice said.

For the quarter ended June 30, the net profit was Rs2.57 billion, up from Rs1.93 billion in the quarter last year. EPS was Rs56.76/share, compared with Rs42.71/share last year.

Cost of goods sold was recorded at Rs23.85 billion against Rs19.93 billion.

Nestle spokesperson said that despite the pandemic and rising input costs, the company remained cautiously optimistic about the performance in the coming period on the back of strong brand equity and continuous initiatives for operational excellence supported by highly committed workforce.

Revenue for the first half of the year was recorded at Rs65.8 billion, 12.7 percent higher compared to the same period last year. Revenue growth was broad based supported by investments behind the brands, new product launches and pricing management.

Further the growth also benefited from the depressed base of last year which was impacted by strict lockdowns. Volume growth, overheads control and value chain cost optimisation initiatives led to a 24.3 percent increase in the company’s operating profit compared to the same period last year.

The reduction in the financing costs contributed towards improvement in the net profit.

Honda Atlas posts Rs928.22mln profit in Q1

Honda Atlas Cars posted a net profit of Rs928.22 million with EPS of Rs6.50 for the first quarter ended June 30, 2021, a bourse filing said.

The company had posted a loss of Rs511.02 million with loss per share of Rs3.58 during the same quarter last year on account of Covid-19 lockdown when sales and production were suspended. Board of directors of the company in their meeting held via video link did not announce any dividend.

The company recorded the gross profit during the quarter at Rs1.59 billion, up against Rs54.22 million during the same period last year.

A report of KASB Research said the result was ahead of their estimates and street consensus which was at Rs5.6/share. The deviation was mainly on account of better than expected gross margins at 7.3 percent. The stock has traded lower after the result.

The company recorded vehicle sales of 7,593 units in Q1MY22 as compared to 2,329 units last year. Volumetric sales were up by 226 percent year on year due to the resumption of sales and low-interest-rate environment.

Other income has increased by 3.7x year on year as the company’s cash balances improved vastly owing to an influx of advances for new Honda City. On a sequential basis, the presence of exchange gains shadowed interest income earned during the quarter.

Topline Securities in its note said the results were higher than industry expectations. Revenues of the company were down 4.0 percent QoQ in Q1MY22 in line with estimates; however gross margins clocked in at 7.3 percent during the quarter, much higher than margins of 5.2 percent recorded in Q4MY21 and margin estimate of 6.4 percent.

“We believe this could be due to improved product mix, lower freight cost and appreciation of rupee,” the brokerage report said.