AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, October 23, 2012 (PPI-OT): LUCK and PSO
LUCK; Profitability is likely to jump by 38% YoY in 1QFY13
Arif Habib Limited previews 1QFY13 financial results for Lucky Cement Limited (LUCK), scheduled to announce on October 25, 2012.
According to Arif Habib Limited expects the company to post net earnings of PKR 2.1 billion (EPS: PKR 6.44) in 1QFY13, a 38% YoY rise, when compared with PKR 1.5 billion (EPS: PKR 4.66) in 1QFY12. This healthy profitability is expected on account of 15% YoY jump in average retention price, which coupled with a modest 1% YoY improvement in dispatches in likely to take net revenues up by 16% YoY. This favorable pricing coupled with lowering coal prices is likely to widen gross margins to highest ever mark of 42% (40% in 1QFY12). In addition, commencement of 20MW of power supply to HESCO, a 15% expected drop in distribution cost due to lower exports and a 52% YoY decline in finance cost will further boost the bottom line of the company.
| Financial Highlights | |||
| PKR million | 1QFY13 | 1QFY12 | YoY |
| Net Sales |
8,667 |
7,496 |
16% |
| Gross Profit |
3,644 |
2,915 |
25% |
| Distribution Costs |
786 |
922 |
-15% |
| Operating Profit |
2,746 |
1,784 |
54% |
| Finance Cost |
39 |
81 |
-52% |
| Profit after tax |
2,084 |
1,506 |
38% |
| Earnings per share (PKR) |
6.44 |
4.66 |
|
| Sources: Company financials and AHL Research | |||
PSO; 1QFY13 Earnings are likely to clock in at PKR 14.34/share
Pakistan State Oil (PSO) is scheduled to announce its 1QFY13 earnings on October 25, 2012. Arif Habib Limited foresees a 19% YoY growth in profitability to PKR 3 billion (EPS: PKR 14.34) in 1QFY13 compared to PKR 2.5 billion (EPS: PKR 12.8) in the same quarter last year. This healthy jump in profitability is likely to come from a 29% YoY improvement in gross profit to PKR 9.9 billion in 1QFY13. Strong YoY volumetric growth of 15% and 11% in MS and HSD respectively coupled with 21% and 9% jump in their respective margins is likely to support the gross profit. In addition a 9% YoY increase in FO prices and inventory gains due to favorable POL price movement will further boost gross profit. Rising level of payables is likely to swell finance cost by 62% YoY to PKR 3.5 billion. Some relief however is likely to come from a 41% YoY lower other operating expenses due to relatively stable exchange rate.
| Financial Highlights | |||
| PKR million | 1QFY13 | 1QFY12 | YoY |
| Net sales |
280,873 |
238,736 |
18% |
| Gross profit |
9,919 |
7,678 |
29% |
| Other operating income |
549 |
487 |
13% |
| Operating expenses |
3,494 |
3,566 |
-2% |
| Finance cost |
3,027 |
1,873 |
62% |
| Taxation |
(1,265) |
1,254 |
n.m |
| Profit after taxation |
2,951 |
2,487 |
19% |
| EPS (PKR) Adjusted |
14.34 |
12.80 |
|
| Sources: Company financials and AHL Research | |||