Pak Suzuki earns profit of Rs1.19 billion in half-year

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31st Aug, 2021. 04:16 pm
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KARACHI: Pak Suzuki Motor Company (PSMC) has announced a net profit of Rs1.19 billion, translating into the earnings per share (EPS) of Rs14.54 for the half-year ended June 30, 2021, compared with the loss of Rs2.46 billion and the loss per share of Rs29.92, a bourse filing said.

The recovery this year is attributed to higher sales that surged 140.6 per cent to Rs66.11 billion during FY21, compared with the sales of Rs27.47 billion in the same period last year. The gross margins improved due to the appreciation of the rupee against the dollar and large-scale economies.

The company’s other income also surged multiple times to Rs866.8 million, compared with Rs194.9 million last year, while the finance cost declined significantly to Rs292.5 million during the period under review from Rs1.94 billion in the corresponding period last year.

The finance costs dipped on account of a decline in the short-term borrowings along with lower financing rates.

“Topline of the company increased due to lower financing rates and revival of [the] economic activity, which aided volumetric growth of 137 per cent (50,096 vs 21,116 units in 1HCY20),” Arsalan Habif at Arif Habib Limited said.

For the quarter ended June 30, 2021, PSMC posted the volumetric jump of 193 per cent to 22,019 units.

For the quarter ended June 30, 2021, the company posted a net profit of Rs418.96 million (EPS: Rs5.09) as against the loss of Rs1.52 billion (LPS: 18.49) in the corresponding period last year.

Avanceon Limited profit up 35.27%

Avanceon Limited has announced a net profit of Rs471.35 million for the half-year ended June 30, 2021, which is 35.27 per cent higher than Rs348.43 million in the same period last year.

The earnings per share (EPS) during the period clocked-in at Rs1.85, compared with Rs1.37 last year. The company did not announce any payout with the results.

The sales revenue increased 56.36 per cent to Rs792.74 million during the period under review, compared with Rs506.94 million in the same period last year.

“The financial results for the half-year period ended June 30, 2021 remained on the positive side to achieve the corporate plan for FY 2021. However, the fourth wave of Covid-19 impacted our revenue recognition slightly, but we are hopeful to compensate for this in Q3 [third quarter] of FY 2021,” the company noted in a bourse filing.

“We observed a major decrease in other income due to the exchange gain at the reporting date because of devaluation of the dollar, which will be restored to [the] previous level during Q3 of FY 2021 and can boost the earning per share (EPS) by Rs2 per share.”

“The Octopus Digital, wholly-owned subsidiary is going to offer its Initial Public Offering (IPO) in September 2021, which is also performing as per [the] management plan and will further increase [the] shareholders’ wealth positively because in [the] last analyst briefing, Octopus Digital figures were not included in the corporate plan, which was shared with the public.”

“The Octopus Digital revenues and net profits shall be additional impact revenues and net profits of the company.”

Kohat Cement announces net profit of Rs3.49 billion

Kohat Cement announced a net profit of Rs3.49 billion, translating into the earnings per share (EPS) of Rs14.54 for the year ended June 30, 2021, compared with the loss of Rs443.73 million and loss/share of Rs2.21 in the previous year.

“[The] earnings are slightly higher-than-expectation, owing to better margins, presumed to be aided by low-cost coal inventory,” an analyst at Sherman Securities said.

The company did not announce any payout along with the financial results. The sales revenue during FY21 surged 112.8 per cent to Rs24.05 billion, compared with Rs11.3 billion in FY20. The sales jumped on the back of 50 per cent higher dispatches and 36 per cent higher retention prices.”

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