Netsol Pakistan posts profit of Rs191 million

Netsol Technologies Limited is a software and technology solutions provider, with the primary focus on the global leasing and finance industry.

The company was incorporated in Pakistan in 1996 as a private company and was later converted into a public limited company.

The company has a strong reputation to deliver innovative software solutions to a range of clients in Pakistan and around the world.

It reported a net profit-after-tax of Rs191 million for the quarter ended September 30, 2022, compared with Rs193 million in the same period of the last year. Despite the decline in the net profit, the basic earnings per share increased to Rs2.18 from Rs2.15 in the corresponding period.

The net profit includes Rs292 million gain from the currency exchange due to the rupee depreciation, which is higher than Rs230 million gain recorded in the same period of the last year.

To further establish its position as a top provider of technology solutions in the global equipment finance and leasing industry, a company affiliated with NETSOL has signed a multimillion dollars contract with a consumer finance bank based in Sweden.

The contract reinforces the company’s leadership in the industry, as it expands the reach of its cutting-edge software to Northern Europe.

As a technology company, it generates a significant portion of its earnings in dollars and as the dollar continues to appreciate, the company will have positive impact on its net income.

The company has announced a board meeting on February 14, 2023, to review the financial results for the period ended December 31, 2022 and it is expected that the company will demonstrate consistency in their financial performance and growth.

Based on the technical analysis of NETSOL’ s stock performance, the company’s share price closed at Rs84.95 in the last trading session. The stock’s 52-week low was Rs75.12, which occurred during a market downturn, while its 52-week high was 122.97.

According to KASB Research, the current trading price is slightly below the company’s book value of Rs89.36/share based on the first quarter of 2023, indicating potential undervaluation.

Maple Leaf Cement profit up over 30%

Maple Leaf Cement Factory (MLCF) has been a prominent name in the cement manufacturing and sales realm for more than six decades. It has covered a wide range of geographical presence primarily in Punjab and Sindh. The company is a subsidiary of Kohinoor Textile Mills Limited.

The company showed better performance in terms of earnings last year although no payout was declared. The profits increased by over 30 per cent from September 2021 and the earnings per share (EPS) rose by almost Re1 in the consolidated section.

For the better part of 2023, MLCF has shown range-bound to negative performance since the momentum of fluctuating international coal price from the last year steadily progressed this year, as well.

However, very recently, the international coal price has seen a massive decline, which resulted in the cement sector, as a whole, displaying better investors’ interest.

From the start of this year, the international coal was more or less stagnant in the $390 to $400 range. However, from the last week of January, it took a steep drop and currently it trails near $220.

For starters, drop in the coal price is clearly reminiscent in MLCF stock performance, whereas the stock was trading below Rs20 by the middle of January 2023, it quickly broke its range-bound attitude and recently made a high of Rs23/share.

Comparing it with the last year, April 2022 saw the stock confidently trading around Rs38, rising steeply from Rs34 in January 2022. This shows vivid potential in the stock’s performance, as well as the ease at which the investors can re-enter this sector, the KASB Research suggested.

The Maple Leaf Cement Factory engages in the production and sale of cement products. Its products include ordinary Portland, sulphate resistant, low alkali, and white cement. The company was founded in 1956 and is headquartered in Lahore.