Pak Elektron records Rs1.73b in profit
Growth attributed to better sales of appliances, result accompanied by cash dividend of Rs1.25 per share
PHOTO: ONLINE
KARACHI:
Pak Elektron (PAEL) posted a net profit of Rs1.73 billion in the second quarter ended June 30, up 24% compared to Rs1.39 billion in the same period of previous year, according to a company notice sent to Pakistan Stock Exchange (PSX).
Earnings per share (EPS) jumped to Rs3.72 compared to an EPS of Rs3.25. The result was accompanied by a cash dividend of Rs1.25 per share.
Market watch: Index falls to 39,500 as selling continues
KSE-100 Index closed on 39,499, down 272 points or 0.68% on Friday. Though Topline Securities reported the result to be higher than expectations, Pak Elektron’s share price was down by 0.39% when it closed at Rs73.83.
Sales grew 19% year on year (YoY) in the outgoing quarter to Rs10.3 billion. “We attribute this to better sales from ‘Appliances’ segment which enjoys greater demand in summer season; we believe this division had around 70-75% share in overall sales,” the reported added.
“Sales tax and discount increased 25% year on year to Rs1.9 billion in second quarter of 2016 (2Q2016).”
“Gross profit rose 10% year on year to Rs3.3 billion in 2Q2016, resulting in gross margins of 32.1%, which contracted 2.5 percentage points. Although a decline compared to same period last year, gross margins are still above last 5-year (2011-2015) average of 23%.
The company witnessed an uptick in distribution cost in 2Q2016, which came in at Rs599 million, up 43% year on year. Balance sheet deleveraging coupled with low interest rates resulted in finance cost to clock in at Rs427 million, down 10% year on year.
PAEL’s effective tax rate came in at 12% (tax expense of Rs228 million) as company enjoyed tax relief on capital expenditure, we believe. In 1H2016, sales increased 24% year on year to Rs20 billion. Gross profit rose 8% year on year to Rs5.1 billion and gross margins fell 3.7 percentage points to clock-in at 30.1%.
Market watch: Bourse rebounds to close at all-time high
Greater than expected Pakistan rupee devaluation against the dollar, sharp increase in commodity prices and greater competition in the form of higher discounts from competitors as key risks for PAEL, the report concluded.
Published in The Express Tribune, August 20th, 2016.
Pak Elektron (PAEL) posted a net profit of Rs1.73 billion in the second quarter ended June 30, up 24% compared to Rs1.39 billion in the same period of previous year, according to a company notice sent to Pakistan Stock Exchange (PSX).
Earnings per share (EPS) jumped to Rs3.72 compared to an EPS of Rs3.25. The result was accompanied by a cash dividend of Rs1.25 per share.
Market watch: Index falls to 39,500 as selling continues
KSE-100 Index closed on 39,499, down 272 points or 0.68% on Friday. Though Topline Securities reported the result to be higher than expectations, Pak Elektron’s share price was down by 0.39% when it closed at Rs73.83.
Sales grew 19% year on year (YoY) in the outgoing quarter to Rs10.3 billion. “We attribute this to better sales from ‘Appliances’ segment which enjoys greater demand in summer season; we believe this division had around 70-75% share in overall sales,” the reported added.
“Sales tax and discount increased 25% year on year to Rs1.9 billion in second quarter of 2016 (2Q2016).”
“Gross profit rose 10% year on year to Rs3.3 billion in 2Q2016, resulting in gross margins of 32.1%, which contracted 2.5 percentage points. Although a decline compared to same period last year, gross margins are still above last 5-year (2011-2015) average of 23%.
The company witnessed an uptick in distribution cost in 2Q2016, which came in at Rs599 million, up 43% year on year. Balance sheet deleveraging coupled with low interest rates resulted in finance cost to clock in at Rs427 million, down 10% year on year.
PAEL’s effective tax rate came in at 12% (tax expense of Rs228 million) as company enjoyed tax relief on capital expenditure, we believe. In 1H2016, sales increased 24% year on year to Rs20 billion. Gross profit rose 8% year on year to Rs5.1 billion and gross margins fell 3.7 percentage points to clock-in at 30.1%.
Market watch: Bourse rebounds to close at all-time high
Greater than expected Pakistan rupee devaluation against the dollar, sharp increase in commodity prices and greater competition in the form of higher discounts from competitors as key risks for PAEL, the report concluded.
Published in The Express Tribune, August 20th, 2016.