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Karachi, October 30, 2012 (PPI-OT): FCCL; Profitability is likely to jump by ~5x YoY
Arif Habib Limited previews the financial result of 1QFY13 for Fauji Cement Company Limited (FCCL) with profit after tax of PKR 516 million (EPS: PKR 0.39), a massive 5x YoY growth, when compared with PKR 104 million (EPS: PKR 0.08) in the corresponding quarter last year.
According to Arif Habib Limited, this was mainly on account of lower base effect of last year, when company capitalized its trial production. In addition to this, strong pricing environment coupled with cooling off coal prices is likely to widen gross margin to 34% in 1QFY13 compared to 15% in 1QFY12. Furthermore financial charges are expected to swell by 4.5x to PKR 308 million in 1QFY13 as the company was capitalizing its finance cost in the same quarter last year.
| Financial Highlights | |||
| PKR million |
1QFY13 |
1QFY12 |
YoY |
| Net Sales |
3,509 |
1,602 |
119% |
| Gross profit |
1,197 |
237 |
404% |
| Admin expenses |
36 |
28 |
26% |
| Selling expenses |
36 |
13 |
169% |
| EBIT |
1,103 |
195 |
466% |
| Financial charges |
308 |
68 |
351% |
| PBT |
794 |
126 |
529% |
| Profit after tax |
516 |
104 |
397% |
| Earnings per share (PKR) |
0.39 |
0.08 |
|
| Sources: Company Accounts and AHL Research | |||
UBL is expected to post earnings growth of 25%YoY in 9MCY12
United Bank Limited (UBL) is scheduled to announce its 3QCY12 results on October 31, 2012. The bank is expected to post net earnings of PKR 4,334 million (EPS: PKR 3.54) compared to PKR 4,453 million (EPS: PKR 3.64) in 2QCY12, a decline of 3% QoQ. However, UBL net earnings is expected to clock in at PKR 13,652 million (EPS: PKR 11.15) in 9MCY12 compared to last year’s same period earnings of PKR 10,952 million (EPS: PKR 8.95), registering a rise of 25% YoY. The bank’s total provisioning against NPLs is expected to witness a decline of 72% YoY to stand at PKR 1,667 million in 9MCY12 against PKR 5,922 million in 9MCY11. UBL’s Non mark-up income is expected to jump by 5% QoQ to reach PKR 3,769 million compared to PKR 3,586 million in the 2QCY12. Arif Habib Limited expects UBL to announce an interim dividend of PKR 1.5 in 3QCY12.
| Financial Highlights | ||||||
| PKR million |
9MCY12 |
9MCY11 |
YoY |
3QCY12 |
2QCY12 |
QoQ |
| NII |
29,021 |
29,582 |
-2% |
9,808 |
9,613 |
2% |
| Provisions against NPLs |
1,667 |
5,922 |
-72% |
618 |
443 |
40% |
| Non Interest income |
11,449 |
8,920 |
28% |
3,769 |
3,586 |
5% |
| Admin Expenses |
17,178 |
14,690 |
17% |
5,892 |
5,760 |
2% |
| PBT |
20,476 |
16,752 |
22% |
6,668 |
6,578 |
1% |
| PAT |
13,652 |
10,952 |
25% |
4,334 |
4,453 |
-3% |
| EPS |
11.15 |
8.95 |
3.54 |
3.64 |
|
|
| Source: Company financials and AHL Estimates | ||||||
Today’s News
• The Lahore High court on Thursday cancelled a notification issued by Pakistan Telecommunication Authority (PTA) imposing additional tax on incoming international phone calls. Justice Ijaz ul Ahsan of LHC also ordered the PTA chairman to submit his reply in a petition filed against the levy till November 5. (BR)
• US energy giant ConocoPhillips and Pakistan’s SSGC are expected to sign a MoU for import of LNG from Qatar to meet pressing energy needs. The Qatari govt has designated ConocoPhillips, which has a stake in North Field- a big gas field along the Qatar-Iran border, to strike an LNG supply deal with Pakistan. (Tribune)
| Margin Trading System | October 25, 2012 | ||||||
| Day Vol | Day Value | Wght Avg | Op. Vol | Op. Value | %open | ||
| (million) | (PKR million) | (million) | (PKR million) | ||||
| FATIMA | 1.46 | 31.61 | 13.0% | DGKC | 6.18 | 268.11 | 17.1% |
| DGKC | 0.59 | 26.03 | 11.8% | LUCK | 1.57 | 179.45 | 11.4% |
| PTC | 0.93 | 13.88 | 12.9% | ENGRO | 2.16 | 173.44 | 11.1% |
| PSO | 0.07 | 12.00 | 13.4% | PSO | 0.94 | 168.93 | 10.8% |
| ENGRO | 0.13 | 10.49 | 12.5% | FATIMA | 6.82 | 141.32 | 9.0% |
| Total | 4.18 | 143.18 | 12.6% | Total | 36.77 | 1568.50 | |
| Source: NCCPL | |||||||
| FIPI (USDm) | Net Buy/(Sell) | MSCI Index | Last | Day | YTD |
| 25-Oct-12 | -2.03 | Pakistan | 95.2 | -0.7% | 17.2% |
| MTD | 33.61 | Frontier Mkt | 475.3 | -0.1% | 1.8% |
| FYTD | 125.66 | Emerging Mkt | 999.1 | 0.5% | 9.0% |
| CYTD | 94.97 | EM Asia | 421.7 | 0.4% | 11.4% |
| Source: NCCPL | Source: MSCI | ||||
| Board Meetings | Date | Time | Location |
| Aisha Steel Mills Ltd | 1Q 30-Oct-12 | 4:00 PM | Karachi |
| Engro Corporation Ltd | 3Q 30-Oct-12 | 2:00 PM | Karachi |
| WorldCall Telecom Ltd | 3Q 30-Oct-12 | 3:00 PM | Karachi |
| Fauji Cement Company Ltd | 1Q 30-Oct-12 | 12:00 PM | Rawalpindi |
| Fecto Cement Ltd | 1Q 30-Oct-12 | 11:30 AM | Karachi |
| Azgard Nine Ltd | 1Q 30-Oct-12 | 4:00 PM | Lahore |
| Agritech Ltd | 1Q 30-Oct-12 | 5:00 PM | Lahore |
| Source: KSE |