KARACHI: Fauji Fertiliser Bin Qasim profits almost double
Fauji Fertiliser Bin Qasim recorded a 93 per cent rise in profits in the quarter ended March 31, posting a profit after tax of Rs1,557.77 million against Rs808.64 million in the corresponding period of the preceding year, according to a notice sent to the Karachi Stock Exchange on Monday.
Earnings per share also jumped to Rs1.67 compared with Rs0.87 last year. The result exceeds market expectations, as analysts expected profits to be around Rs1,300 million.
The rise in profits is attributed to a 23 per cent rise in turnover, which jumped from Rs6.57 billion to Rs8.05 billion in the first quarter of calendar 2011. Other incomes also surged to Rs332.01 million compared with Rs134.66 million – a massive increase of 147 per cent.
Despite undergoing a complete shutdown for 45 days due to suspension of gas supply, along with a decline in sales volume of urea and DAP, soaring prices of both fertilisers, up 16 per cent and 40 per cent, respectively since the new year, drove up revenues and maintained healthy gross margins.
The company also announced its first interim cash dividend, in line with market expectations, at Rs1.25 per share; however, the company’s shares lost 0.8 per cent in trade at the Karachi Stock Exchange on Monday.
Bank Alfalah profits jump
Bank Alfalah posted healthy earnings in the quarter ended March 31, recording a profit after tax of Rs929.67 million, compared with Rs586.49 million in the corresponding period of the preceding year. Earnings per share also rose from Rs0.43 to Rs0.69.
Interest earned rose by 15 per cent to Rs10.69 billion, while interest expenses remained flat at Rs6.25 billion. BMA Capital analyst Umar Rafiq informed that the bank had improved its margins. He explained that secondary market yields rose, which improved performance.
The bank, however, experienced an increase in provisions against loans and advances that jumped to Rs679.22 million against Rs310.13 million in the first quarter of 2010. Despite the massive rise in provisions, it is a healthy improvement over the figure recorded in the final quarter of 2010. Bank Alfalah had posted provisions of over Rs1 billion in the last quarter, most of which was related to telecom subsidiary Warid.
The analyst added that Bank Alfalah, when compared with the rest of the banking sector, had a low loan-loss coverage. The bank did not announce a dividend in this quarter; resultantly, the bank’s stock lost Rs0.36 to close at Rs10.47 during trade at the Karachi Stock Exchange on Monday.
DG Khan Cement cuts losses
DG Khan Cement managed to cut its losses in the quarter ended March 31, recording a net loss after tax of Rs14.89 million, compared with Rs81.8 million in the same period last year. Sales rose by a significant 26 per cent to Rs4.9 billion, while gross profit more than trebling to Rs1.26 billion.
In the nine months ended March 31, the largest cement manufacturer in Pakistan saw its profits decline by 54 per cent. The company announced a net profit after tax of Rs177.25 million, compared with Rs388.17 million in the nine months ended March 31, 2010. Earnings per share also declined to Rs0.49 from Rs1.06.
The decline in profits is attributed to an 83 per cent increase in expenses. Additionally, the company faced an effective tax rate of 58 per cent, instead of 13 per cent last year. The company paid Rs246 million against Rs55 million same period last year.
The company’s profits were pulled up by rising cement prices, as the price of the commodity increased by an average 27 per cent in the July-March period.
The results, however, were well below market expectations, as analysts had predicted profits of around Rs275 million for the nine months. Shareholders’ disappointment at the results and absence of a dividend were evident, as the company’s stock lost 3.3 per cent during trade at the Karachi Stock Exchange.
ABL profits rise
Allied Bank Limited (ABL) posted healthy earnings in the first quarter of the calendar year, with profit after tax rising 41 per cent to Rs2.51 billion from Rs1.78 billion in the corresponding period of the previous year. Earnings per share rose from Rs2.27 to Rs3.21 during the period.
Analysts attributed the earnings to the net interest earned, which has improved for all banks which have announced their financial results for the quarter.
The bank witnessed an improvement in interest earned, rising from Rs10.93 billion to Rs12.3 billion, while interest expenses rose marginally to Rs6.09 billion from Rs5.57 billion in the first quarter of 2010.
Non mark-up expenses rose from Rs3 billion to Rs3.49 billion, primarily due to a jump in administrative expenses. Similarly, taxes paid by the bank rose significantly, from Rs905.68 million to Rs1.34 billion.
Despite the increase in profits, the bank did not announce any dividend. However, the rise in profits created investor interest, as the bank’s stock was traded actively on the Karachi Stock Exchange, gaining Rs0.57 to close at Rs62.02 on Monday.
Published in The Express Tribune, April 26th, 2011.
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ