Tag: Financial Results

  • PTCL’s profits drop by 7.11% despite revenue increase

    PTCL’s profits drop by 7.11% despite revenue increase

    Pakistan Telecommunication Company Limited (PSX: PTC) has reported its financial performance for the first nine months of 2023.

    The company’s profit dropped by 7.11 per cent compared to the same period last year, coming in at Rs7.64 billion with earnings of Rs1.50 per share. This is less than the Rs8.23 billion profit and Rs1.61 per share in the previous year.

    On the positive side, the company’s revenue increased by 17.15 per cent compared to last year, reaching Rs71.61 billion, up from Rs61.13 billion.

    Even though the cost of sales also increased by 17.16 per cent, the increase wasn’t as much as the rise in sales, resulting in a 17.1 per cent increase in gross profit, which reached Rs15.28 billion.

    In terms of expenses, selling and marketing costs rose by 21.53 per cent year-on-year, while administrative and general expenses increased by 10.28 per cent during this period.

    Additionally, the company’s impairment loss on trade debts and contract assets went up by 6.53 per cent.

    Looking ahead, PTCL’s other income increased significantly, going up by 48.30 per cent. The company’s finance costs saw a substantial increase due to higher interest rates.

    Regarding taxes, the company paid 11.33 per cent more in taxes compared to the previous year.

  • Pakistan Stock Exchange breaks six-year record, surpasses 50,000 points 

    Pakistan Stock Exchange breaks six-year record, surpasses 50,000 points 

    The recent surge in the performance of the benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) can be attributed to the combination of a positive earnings season and notable economic improvements. 

    On Tuesday, the index breached the significant 50,000-point threshold, marking the first time in over six years since June 7, 2017.

    Around 11 am, the benchmark index was trading at 50,017 points, reflecting a gain of 286 points, equivalent to a 0.58 per cent increase. However, it later retracted from this milestone. 

    This momentous achievement was supported by multiple factors, including an enduring upward trend observed in various sectors, such as automobile assemblers, commercial banks, cement, chemical, oil marketing companies, and oil and gas exploration firms.

    The bullish momentum on the Pakistan Stock Exchange has been a consistent theme, extending through 11 consecutive trading sessions. Intra-day trading on Monday nearly brought the KSE-100 Index to the 50,000 level, closing at 49,731.35 points. 

    One significant driver behind this surge has been the strengthening of the Pakistani rupee against the US dollar, with the exchange rate holding steady at around Rs275 in the inter-bank market.

    Additionally, the ongoing earnings season has instilled confidence in the market, with high expectations, especially in the banking sector, for positive financial results. These factors collectively contribute to the robust performance witnessed in the Pakistani stock market.

  • Pakistan Stock Exchange surpasses 46,000 mark for the first time in 15 months

    Pakistan Stock Exchange surpasses 46,000 mark for the first time in 15 months

    The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index experienced significant gains on Friday, rising by over 500 points and closing just below the 46,000 mark.

    The index reached 46,073.61 points at 3:47 pm, showing a notable increase of 675.30 points from the previous day’s closing of 45,398.31. However, by the end of the day, it closed at 45,920.73, up by 522.42 points or 1.15 per cent.

    According to Dawn, Ahsan Mehanti, the Director of Arif Habib Corporation, mentioned that foreign capital was actively buying shares in the energy sector. He attributed the stock market rally to favorable financial results, the Islamabad High Court’s ruling declaring the imposition of a super tax on various companies unlawful, and reports indicating the policy rate would remain unchanged.

    As a result of these factors, the index reached the 46,000 mark after a gap of 15 months, signaling an overall improvement in all sectors. Mehanti also pointed out the positive impact of the recently announced standby agreement with the International Monetary Fund (IMF).

    Looking ahead, if the market continues to close above 46,000, it is expected to see further growth. Amir Shehzad, Director of First National Equities Limited, referred to the recent market fluctuations as a “technical correction” and expressed optimism that the market could surpass the 47,000 point barrier in the coming week. He believed that maintaining an unchanged monetary policy by the central bank would likely have a positive effect on the market, possibly leading to new record levels.

  • Toyota Indus Motor Company sees 142% increase in quarterly profit despite low demand

    Toyota Indus Motor Company sees 142% increase in quarterly profit despite low demand

    Indus Motor Company (IMC) announced a 37 per cent decrease in its profit-after-tax (PAT) for the third quarter of financial year 2022-23, with earnings of Rs3.216 billion compared to Rs5.118 billion in the same period last year.

    Despite this, the automaker saw an increase in its quarterly PAT by 142 per cent, which was attributed to an improvement in gross margins, resulting in an operating profit after two consecutive quarterly operating losses. The company also declared an interim cash dividend of Rs24.4 per share, in addition to the previously paid interim cash dividend of Rs18.4 per share.

    Muhammad Abrar, an investment analyst at Arif Habib Limited, explained that IMC was able to offset the impact of currency devaluation by raising the prices of its cars significantly. The automaker’s operating expenses were also curtailed. While revenue decreased by 29 per cent due to lower units sold, IMC’s gross profit was Rs3.05 billion during 3QFY23, compared to Rs5.23 billion in the same period last year.

    Pakistan’s auto sector has been struggling due to the government’s decision to curb imports and restrict issuance of Letters of Credit (LC), higher finance cost, and massive increases in car prices. Despite this, IMC’s gross margins improved to 6.3 per cent on a QoQ basis, which was unexpected, according to Abrar.

    According to Brecorder, the company’s earnings per share (EPS) stood at Rs40.92, compared to Rs65.11. IMC’s board of directors met to review the company’s financial and operational performance in the first nine months ended March 31, 2023. While higher profits are expected in the upcoming quarter due to the increase in car prices and the reduction of operating expenses, the country’s auto industry reported a 66 per cent decrease in car sales compared to March 2022.

    Last week, Pak Suzuki Motor Company Limited also reported its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023 due to decreased sales and high finance costs.