The Bell – Elixir Securities Limited

Karachi, April 29, 2015 (PPI-OT): 9MFY15 EPS expected at PKR4.59

TGL is expected to announce its 9MFY15 results on April 30, 2015. Elixir Securities Limited expects the company to post EPS of PKR4.59 relative to LPS of PKR2.09 during the same period last year. 3QFY15 earnings are expected at PKR1.29/sh, significantly higher than the loss of PKR3.29/sh in 3QFY14 primarily due to lower energy costs and higher float glass prices. Revising estimates on early furnace commissioning, delay in gas price hike and GIDC provisioning

TGL’s tableware furnace, which had been closed down for major re-build and expansion, will start commercial production from 1-May-15. Owing to early commissioning (~15 days), Elixir Securities Limited have increased Elixir Securities Limited’s EPS estimate for FY15 by PKR0.35/sh.

In addition to this, Elixir Securities Limited remains conservative in Elixir Securities Limited’s estimates and assumed that a gas tariff hike will be applicable from Apr-15. Elixir Securities Limited extends Elixir Securities Limited’s tariff hike assumption to Jul-15 and increase Elixir Securities Limited’s FY15 EPS estimate by PKR0.71/sh. However, with the National Assembly likely to approve GIDC Act in May-15, Elixir Securities Limited believes that TGL will have to provide for its outstanding GIDC payments in FY15. Owing to this, Elixir Securities Limited have reduced Elixir Securities Limited’s FY15 EPS estimate by PKR1.55.

Maintain Buy

Owing to the aforementioned factors, Elixir Securities Limited have revised Elixir Securities Limited’s FY15 EPS estimate for TGL to PKR6.16 (↓6%). Elixir Securities Limited’s Dec-15 PT of PKR121/sh offers total return of 104% at last closing. Buy!