AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, October 24, 2012 (PPI-OT): NPL and PSMC
NPL; Earnings are likely to register a 27% YoY increase
Nishat Power Limited’s (NPL) board of directors is scheduled to approve and announce its 1QFY13 financial results on October 25, 2012.
According to Arif Habib Limited expects the company’s profit after tax to clock in at PKR 548 million (EPS: PKR 1.55), compared with PKR 431 million (EPS: PKR 1.22) in 1QFY12, depicting a 27% YoY increase. This growth is anticipated on the back of 13% YoY lower finance cost, as recovery from overdue receivables is supposed to ease off heavy short term borrowings. NEPRA’s data indicate that the company operated at a load factor of 62% in July 2012, forming the basis of Arif Habib Limited’s 65% load factor assumption in 1QFY13.
| Financial Highlights | |||||
| PKR million | 1QFY13E | 1QFY12 | YoY | 4QFY12 | QoQ |
| Sales |
5,460 |
6,264 |
-13% |
5,396 |
1% |
| Cost of Sales |
4,254 |
5,071 |
-16% |
4,104 |
4% |
| Gross Profit |
1,206 |
1,193 |
1% |
1,292 |
-7% |
| Administrative Expenses |
22 |
20 |
11% |
20 |
9% |
| Other Operating Income |
16 |
6 |
188% |
25 |
-36% |
| Profit from Operations |
1,200 |
1,179 |
2% |
1,297 |
-8% |
| Finance Cost |
651 |
746 |
-13% |
696 |
-6% |
| Profit before taxation |
548 |
433 |
27% |
601 |
-9% |
| Profit after taxation |
548 |
431 |
27% |
613 |
-11% |
| Earning per share (PKR) |
1.55 |
1.22 |
27% |
1.73 |
-11% |
| Source: AHL Research | |||||
PSMC; Earnings expected to lower by 57% QoQ
The Board of Directors of Pak Suzuki Motor Company Limited (PSMC) is scheduled to meet on October 25, 2012 to approve the financial results for 3QCY12. Arif Habib Limited expects the company to earn profit after tax (PAT) of PKR 338 million (EPS: PKR 4.10) in 3QCY12, decline of 57% QoQ. The decrease in profitability is primarily due to 1) 33% QoQ decline in sales volume to 17,659 units, which leads to 37% QoQ decline in the company’s top-line to PKR 11 billion 2) Gross margin dropped by 129 bps and stood at 5.9%, this was on account of cost burden of Euro-II compliance and impressive sales volume in 2QCY12 due to expected discontinuation of factory fitted CNG vehicles and Punjab government taxi scheme, under which 20,000 units were delivered to government of Punjab which reduces fixed cost 3) Discontinuation of Alto which comprises approximately 16% of total sales 4) Strong competition from imported Japanese cars to economy segment (1000 cc and lower) which is company’s primary target market for sales.
| Financial Highlights (PKR million) | ||||||
| 3QCY12E | 2QCY12A | QoQ | 9MCY12E | 9MCY11A | YoY | |
| Sales |
11,114 |
17,707 |
-37% |
47,585 |
38,549 |
23% |
| Cost of sales |
10,458 |
16,433 |
-36% |
44,677 |
37,090 |
20% |
| Gross profit |
656 |
1,273 |
-49% |
2,908 |
1,458 |
99% |
| Distribution and |
|
|
|
|
|
|
| admin. Costs |
264 |
322 |
-18% |
840 |
722 |
16% |
| Other income |
166 |
206 |
-19% |
498 |
464 |
7% |
| Finance cost |
5 |
2 98% |
11 |
13 |
-15% |
|
| Profit before tax |
519 |
1,075 |
-52% |
2,383 |
1,100 |
117% |
| Taxation |
182 |
294 |
-38% |
676 |
429 |
58% |
| Profit after tax |
338 |
781 |
-57% |
1,707 |
672 |
154% |
| Earning per share |
4.10 |
9.48 |
|
20.74 |
8.16 |
|
| Source: Company financials and AHL Research | ||||||