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BUSINESS Tuesday, 30 April, 2013
Lucky cement EPS grew by 49pc KARACHI: Lucky Cement Company (LUCK) announced results of third quarter of current fiscal year earning per share rose to Rs 21.6 as against Rs14.5 in the same period last year, up 49 per cent. Despite volumetric variance 1per cent, top line of the company grew by 16 per cent to Rs 27.7bn as against Rs 23.9b during the corresponding period last year due to sharp increase in cement prices. Revenue per bag of the company rose by 14per cent to Rs313 as against Rs 274 during the same period previous year. Cost per bag on the other hand inched up by 3 per cent. This resulted in gross margins expansion by 6pps to 44 per cent. Other income was realized at Rs 196mn during the current year as against Rs3mn during same period previous year. In 3QFY13 the company posted profit of Rs2.7bn as against Rs2.3bn in 2QFY13, up 18 per cent while is up 61 per cent as against Rs1.7bn in the same period last year. STAFF REPORT
NBP announces unconsolidated profit KARACHI: The National Bank of Pakistan (NBP) announced unconsolidated profit after tax of Rs3.0bn (diluted EPS Rs1.42) in first quarter of current fiscal year as against Rs4.8bn (Rs2.24 per share) in 1Q2012. Decline in earnings is mainly comes from reduced NII (Net Interest Income) on the back of shrinking banking spreads. Reduced interest rates along with hike in cost of deposits are the factors behind the shrinking spreads. Compared to 1Q2012, interest income declined by 4 per cent to Rs 23.9bn while interest expense rose by 4 per cent to Rs 15.1, rendering into 14 per cent decline in NII to Rs 8.8bn. Further provisioning of Rs 1.2bn versus reversal of Rs 0.6bn in 1Q2012 and 15 per cent increase in nonmarkup expense to Rs 8.9bn also impacted the profits. However, 42 per cent up tick in non-markup income to Rs5.6bn provided some support. In sequential basis, interest income declined by 4 per cent while interest expense increased by 25 per cent. Resultantly, NII declined by 31 per cent from Rs12.8bn in 4Q2012. In addition, 30 per cent decline in non-markup income also dented the bottom line. STAFF REPORT
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IMF bail-out accepted ‘in principle’ by caretaker govt ISLAMABAD
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AGENCIES
He caretaker government has agreed in principle to a bailout programme proposed by the International Monetary Fund (IMF) which would force Pakistan to introduce major restructuring of public sector enterprises and banking sector safeguards. The programme is part of an extended Fund Facility (eFF) worth over $5 billion to be made part of draft of the budget for 2013-14 and to be signed by the next elected government. An official said that the package involved reforms in seven key areas. Among them is restructuring of eight major public sector enterprises continuously relying on the federal budget to operate, so that they may stand on their own
feet in two years for possible divestment. The lending agency wants Pakistan to make the ‘best use’ of breathing space provided by the $5bn loan to create an environment conducive to fresh private investments and issuance of international bonds so that the country’s foreign exchange reserves are built up to a level sufficient for six months of imports and a stable exchange rate may be maintained. The State Bank has been asked to take effective steps in consultation with the government to introduce safeguards in case of failure of small banks by increasing the capital adequacy ratio and possibly setting up a common fund for facing off risks of the small and medium private commercial banks. The programme proposes that the in-
surance scheme for bank depositors be expanded through an effective mechanism and strengthening of the insurance sector. The most important requirement of the new programme will be introduction of massive reforms on the revenue front for mobilising additional resources equivalent to 2.5 per cent of the gross domestic product (GDP) in three years. At the current size of the GDP, the additional resource mobilisation works out to Rs580-600bn. Of this 1.5 per cent will have to be raised during 2013-14. Also in the list of the conditions are power sector reforms to reduce system losses and introduce market-based electricity rates with minimum subsidies, which would effectively make electricity even more inaccessible for the majority of Pakistanis.
Most businessmen pay their taxes, claims LCCI president LAHORE ONLINE
The Lahore Chamber of Commerce and Industry on Monday said that a large majority of business community paid their taxes and it was the responsibility of the Federal Board of Revenue to increase the tax net. In a statement issued in response to the remarks by Asad Umar, a financial expert affiliated with the Pakistan Tehreek-e-Insaf, that most of the businessmen do not pay taxes, LCCI President Farooq Iftikhar said that the remarks are uncalled for and reflects lack of insight. The LCCI president said that a very large number of businessmen pay taxes honestly while a small fraction either pay less tax or no tax and that too is in the knowledge of tax officials. “The revenues shortfall is because of exemptions and SROs provided to certain sectors. The FBR must enlarge its tax base and until they do it, they
must set realistic revenue targets. You cannot further tax the existing tax payers that contribute over sixty per cent to the total tax revenue despite being 25 percent of the GDP,” Farooq Iftikhar said, adding that services sector has tremendous scope and must be brought into the tax net to enhance the muchneeded Tax-to-GDP ratio. He said that all sectors of the economy must be taxed, adding that agriculture having 20.1% share in GDP is contributing only 1.2% to the national taxes. On the other hand, manufacturing sector share in GDP is 25.5% and is contributing 62.2% to the national taxes. Services sector share is 54.4% in GDP but is paying only one third of its share in the national taxes, he said. He said that the Lahore Chamber of Commerce and Industry had already pinpointed that the revenue target of Rs 2,381 billion was unrealistic because of the energy crisis which kept industrial productions low besides global recession which adversely badly impacted on
It is not fair to make generalized statements and label the entire business community as nontax payers. Obviously black sheep are everywhere but good governance is the main area politicians must focus on. FAROOQ IFTIKHAR LCCI PresIdent
exports. “It is not fair to make generalized statements and label the entire business community as non-tax payers. Obviously black sheep are everywhere but good governance is the main area politicians must focus on,” he said.
The lending agency wants Pakistan to make the ‘best use’ of breathing space provided by the $5bn loan to create an environment conducive to fresh private investments and issuance of international bonds so that the country’s foreign exchange reserves are built up to a level sufficient for six months of imports and a stable exchange rate may be maintained
Pakistan spends $4.377b on telecom imports in five years ISLAMABAD: Pakistan has imported around $4.377 billion mobile phone handsets and other telecom apparatus during last five years with telecom imports of $1.331 billion only in 2007-08, the most promising year for the sector. Pakistan Telecommunication Authority (PTA) in its year 2012 report has revealed that the country imported mobile phone handsets with battery of US $ Dollar 1.428 billion and other telecom apparatus worth $2.949 billion. It said during 2012, total telecom imports in the country reached $954 million, showing a sharp rise of 24.5 percent over the previous year. This increase in total telecom imports is due to a sharp rise in imports of cellular mobile handsets in the country, which have reached $465.3 million in 2012 compared to $218.2 million in 2011, registering a growth of 113 percent. This fresh rise in the import of cell phones is due to an increasing demand for less costly Chinese mobile handsets while cellular subscribers have reached 120 million and an increasing demand for expensive smart phones in the country. APP
THREE-MEMBER MINISTERIAL COMMITTEE FORMED ON ENERGY ISLAMABAD NNI
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three-member committee comprising federal ministers for petroleum, water and power and adviser on finance, has been constituted to review the energy situation and give its recommendations to improve the power situation in the country. This decision was taken by Prime Minister Mir Hazar Khan Khoso while chairing a high level meeting to review the energy situation in the country. The meeting was informed that the current power generation in the country was 9,200 MW against a demand of 13,000MW. The PM was informed that only 55 mmcfd gas was being provided to the thermal power plants against
the promised 150mmcfd gas. The meeting also reviewed the position of recovery of dues and the quantum of funds required to produce optimum generation. It was also decided during the meeting to setup a mechanism to monitor the generation and demand of electricity in the country. The PM directed the Ministry of Water and Power to ensure that uninterrupted electricity was available in the country for the evening of May 10 for the next 36 hours to ensure that the process of polling and counting of votes is completed smoothly. G wA d A r - r A t o d e r o roAd: Meanwhile, presiding over another meeting to review progress on the Gwadar-Ratodero Road, Prime Minister Khoso said the government will accelerate the pace of work on the project so that people of Pakistan could reap the benefits of the Gwader port.
Khoso issued instructions that work on Khuzdar-Ratodero section and Hoshab-Gwadar section should be completed during the next 12 months while work on N85 Road and N-30 should be prioritised for early completion of these linkages with Gwadar. The PM was informed that the total road network of the country was spread over 12,131 kilometres of which over 37 percent of the roads comprised those in Balochistan. He said that the completion of this road is not only important for linking Gwadar with the rest of the country but it would also stimulate development in the area from Gwadar up till Ratodero. The meeting was attended by Minister for Communication Asadullah Khan Mandokhel‚ Advisor to the Prime Minister on Finance Dr Shahid Amjad Chaudhry and Chairman National Highway Authority Hamid Ali Khan.
PM orders Ministry of Water and Power to ensure that uninterrupted electricity is available in the country for the evening of May 10 for the next 36 hours to ensure that the process of polling and counting of votes is completed smoothly
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BUSINESS B Tuesday, 30 April, 2013
MCB earns profit in first quarter of 2013 KARACHI STAFF REPORT
The Muslim Commercial Bank (MCB) announced unconsolidated profit of Rs5.8bn (ePS Rs5.7) up 35 per cent in first quarter of current fiscal year after tax as against Rs4.3bn (ePS Rs4.22) in 4Q2012 and 4 per cent as against Rs 5.6b (ePS Rs5.5) in 1Q2012. The result is also accompanies by Rs 3.5 per share cash dividend. Although declining banking spreads has impacted Net Interest Income (NII) of MCB, reversal of provisioning and controlled administrative costs were the profitability drivers in 1Q2013. As compared to 1Q2012, interest income declined by 5 per cent to Rs 16.7bn while interest expense rose by 2 per cent to Rs 7.0 in 1Q2013. Resultantly, NII declined by 9 per cent to Rs 9.7bn. Further 3 per cent decline in non-markup income to Rs 2.4bn also depressed profitability. However, Rs 840m reversal of provisions as against provision charge of Rs 75mn in 1Q2012 and 6 per cent decline in nonmarkup expense to Rs 4.2b helped MCB to post 4percent YoY increase in profitability. On sequential basis, though NII improved by marginal 1per cent but reversal of Rs840mn as against Rs 424mn provision charged in 4Q2012 resulted in 15 percent improvement in NII (After provisions). Further 6per cent increase in non-markup income and 12 per cent decline in non-markup expense resulted in 35 per cent increase in the profitability.
Engro Food earns Rs 1,786m profit in 1Q KARACHI
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STAFF REPORT
NGRO food’s consolidated revenues surged by 36% to Rs. 31,301 million while net profit was Rs. 1,786 million as compared to a net loss of Rs. 649 million during the same period last year. The Board of Directors of engro Corporation Limited on Monday announced the financial results for the first quarter ended, March 31, 2013. They said that the return to profitability is mainly attributable to the fertilizer business, where the transfer of Mari gas to the new urea plant helped the company post healthy results. The company announced an ePS of Rs. 3.49 for the quarter ended March 31, 2013 as opposed to an LPS (loss per share) of Rs. 1.27 during the same period last year. engro’s fertilizers business continued to experience 86% gas curtailment on the SNGPL network. However, the company’s production during the quarter was 296 KT as compared to 255 KT during the same period last year mainly due to incremental efficiencies by diverting Mari gas to the enven plant. Higher production along with lower availability of competitive imported urea increased eFert’s urea sales to 298 KT in 1Q 2013 from 77 KT in 1Q 2012 and improved its market share to 23% in 1Q 2013 from 8% in 2012. Resultantly, engro Fertilizers posted a net profit of Rs. 646 million during the period ended March 31, 2013 vs. a loss of Rs. 1,420 million during the same period
last year. Despite stable revenues, engro Foods’ profitability was higher than 1Q 2012 by 34% due to lower costs of sales. The business closed the quarter with a profit of Rs. 653 million vs. a profit of Rs. 486 million in the corresponding period of 2012. The Company’s investments in the Halal Foods business in Canada, Al Safa, achieved sales revenue of Canadian Dollars 2.2 million during 1Q 2013 as compared to Canadian Dollars 2.5 million in the same period of last year. engro’s Rice business’s revenues increased to Rs. 1,218 million in 1Q 2013 from Rs. 161 million in 1Q 2012 and loss after tax reduced to Rs. 319 million in 1Q 2013 versus loss of Rs. 390 million in 1Q 2012. engro Polymers showed a robust performance in 1Q 2013 with the company producing its highest ever monthly VCM and PVC volumes in the month of March. engro Polymers revenue grew by 17% in 1Q 2013 as compared to the same period last year. Growth was mainly attributable to higher PVC and Caustic prices versus last year. engro Polymer posted a profit after tax of Rs. 263 million in 1Q 2013 as compared to a profit after tax of Rs. 414 million in the same period last year. Profit excluding the extraordinary item increased by about Rs. 100Mn as compared to the same period last year. engro Vopak registered a profit after tax of Rs. 271 million as compared to Rs. 340 million in 1Q 2012. Lower tariffs on paraxylene and acetic acid led to a dip in profitability.
Major Gainers COMPANY rafhan Maize Bata (Pak) Xd Wyeth Pak Ltd shezan Inter. national Foods
OPEN 4200.00 2083.72 1483.96 456.75 355.00
HIGH 4400.00 2187.90 1558.15 479.58 372.75
LOW 4001.00 2040.00 1549.00 456.00 345.00
CLOSE CHANGE 4375.00 175.00 2162.18 78.46 1558.15 74.19 479.58 22.83 372.75 17.75
TURNOVER 220 2,050 3,300 2,200 38,900
5050.00 1852.50 900.00 422.10 293.00
4850.00 1852.50 855.00 422.10 281.05
4900.00 1852.50 855.50 422.10 281.06
-190.00 -97.50 -44.50 -18.57 -14.78
200 100 1,400 100 16,200
12.00 7.68 5.23 9.45 18.95
11.20 7.55 4.75 8.83 18.30
11.82 7.59 5.16 9.27 18.34
0.52 0.05 0.35 0.42 -0.61
28,122,000 11,008,500 10,366,000 8,965,000 6,479,000
Major Losers Unilever Food Xd Colgate Palmolive Island textile sanofi-Aventis Xd Philip Morris Pak.
5090.00 1950.00 900.00 440.67 295.84
Volume Leaders trG Pakistan Ltd. 11.30 Lotte Chemical 7.54 Wateen telecom Ltd 4.81 B.O.Punjab sPOt 8.85 Maple Leaf Cement 18.95
Interbank Rates Usd GBP JPY eUrO
PKr 98.4244 PKr 152.0361 PKr 0.9979 PKr 128.2076
Forex BUY Us dollar euro Great Britain Pound Japanese Yen Canadian dollar Hong Kong dollar UAe dirham saudi riyal
99.90 129.43 152.95 1.0020 96.92 12.58 26.95 26.45
SELL 100.15 129.70 153.19 1.0124 98.62 12.82 27.20 26.70
CORPORATE CORNER Networks as member of the seven member UNGC Local Networks Advisory Group formed to coordinate over 100 LNs globally as a part of the newly established multi centric governance mechanism. Mr Siddiqi was elected at the XI Annual Local Network Forum (ALNF) held in Geneva this week and will represent the UNGC Networks of Pakistan ,India, Sri Lanka, Bangladesh, China, Japan, Korea, Nepal ,& Maldives in the LNAG. PR KARACHI: Zong launched a brand new postpaid service named BizXcess. Picture shows Zong Chief Financial Officer Feng Tuxian and senior management at the launch ceremony. PR
Dalda launches ‘Vote Aap Ka’ campaign
LAHORE: Dalda has launched its new and unique campaign “Vote Aap Ka” all across Pakistan. Through this campaign, Dalda aims at paying a tribute to motherhood by reviving the love for our mothers in our hearts. We have become so engrossed in our daily lives that we at times forget to shower our mother with unconditional love. With this campaign Dalda gave everyone in Pakistan a chance to realize the importance of mothers and give them the love and affection they deserve. For this purpose, people of Karachi, Lahore and Islamabad were invited to join us in an activity called the Mamta March on Sunday, April 28 from 8-9pm at Port Grand in Karachi, Fortress Stadium in Lahore and Centaurus Mall in Islamabad. PR
Fasihul Karim elected to represent South, Central and North East Asian Networks KARACHI: Fasihul Karim Siddiqi, Secretary Global Compact Network Pakistan and Member Managing Committee /Board of Directors Employers Federation of Pakistan has been unanimously elected to represent the South, Central and North East Asian
TEVTA chairperson urges availability of skilled manpower
LAHORE: Chairperson Technical Education and Vocational Training Authority (TEVTA) Rashida Malik has said that availability of skilled manpower is not only a key to success for industrial development in Pakistan but also for individual socio-economic prosperity and poverty alleviation in the society. Close and effective liaison with the industry can help TEVTA for training the youth in demand driven and employable trades. She was addressing on the occasion of inauguration ceremony of new building of Architecture Department at Govt. College of Technology, Railway Road here yesterday. JICA of Japan has provided Rs. 850 million grant-in-aid for the construction of this building and provision of machinery and equipment to run the courses. The ceremony was attended by First Secretary Embassy of Japan Mr. Kuroda, JICA Chief in Islamabad Mr. Kawasaki, TEVTA Officers, Principal, teachers and students of said College. Chairperson TEVTA said that curricula of DAE Mechanical and Architecture Technologies, with the collaboration of JICA, have been revised and implemented in all TEVTA Institutes offering these technologies. PR
Xpress Money launches instant Inter-Bank Fund Transfer remittance service KARACHI: Xpress Money, the most dependable global money transfer brand, has partnered with
KASB Bank to offer instant Inter-Bank Fund Transfer (IBFT) remittance service across 17 banks in Pakistan with a combined nationwide network of over 6000 locations. With this pioneering initiative, Xpress Money through KASB Bank, will be the first to provide the IBFT service instantly to customers, which until now took at least 24 hours to get credited. By virtue of being the leader in the remittance industry in Pakistan, Xpress Money is constantly ideating on innovative money transfer services; with consumer convenience and satisfaction, being their sole objective. This strategic tie-up with KASB Bank will empower Xpress Money’s customers to credit money instantly into the accounts of their loved ones back home within seconds of the transaction. The remitter simply needs to visit any of Xpress Money’s 170,000 agent locations across the globe and provide the beneficiary’s Account Title and Account Number, upon which the agent will be able to pull up all related details of the account holder and the transfer will be done immediately. Back home in Pakistan, the beneficiary’s account will reflect an immediate credit once the transaction is through, and they can then enjoy a hassle free withdrawal anytime from an ATM. PR
Pearl Continental Peshawar organizes classical musical evening
audience genuinely enjoyed his high class performance and appreciated the hotel for introducing young talents to the public. PR
USAID team visits USAID-funded FCC women’s hostel construction site
LAHORE: A delegation from USAID Islamabad visited Forman Christian College (A Chartered University) this morning to monitor progress on the new women’s hostel being constructed on the FCC campus with US$6 million support from USAID. The 10-member USAID delegation was led by Ms Patrice Lopez, Contracting & Agreement Officer, and included Mr Muhammad Ali Bilal, Acquisition Specialist, and Mr Zaki M. Saad, Deputy Director Office of Infrastructure & Engineering. The FCC Rector Dr James Tebbe, and the Project Manager Mr Tajammul John, took the delegation on a tour of the site. The hostel is a 6-storey building with accommodation for 374 female students. PR
Silk Bank announces first quarter results PESHAWAR: A classy musical evening was organized by the Pearl Continental Peshawar at its elegant Kushaal Hall. Despite heavy rains, large number of music lovers, elites and families of the city attended the event. The new General Manager of the hotel Aamir Kazi thanked the audience and shared with them the forthcoming attractions that the hotel has in the offing. He also put forth his vision about the purpose and different objectives of such events in Peshawar. Performer of the evening was Ms. Tina, an established vocalist from Islamabad. The audience enjoyed the old and new songs that she sang. Corporate General Manager Media & Communications Mr. Tahir Khan asked if there were any young singers to come to the stage and perform, amongst the audience, a student of high school joined the group and sang a few hits of Shafqat Amanat Ali and Rahat Fateh Ali, the
KARACHI: The Board of Directors of Silkbank Limited, in their meeting held on April 27, 2013, announced the quarterly results of the Bank for the quarter-ended March 31, 2013, showing growth in deposits and revenues. The Bank significantly improved the deposit mix, through increase in lowcost current and saving accounts. The Bank had made strategic investments in new business lines, credit card and Islamic banking business, last year which was received positively by the market. The investments related to the promotion and expansion of new businesses including launch of new Islamic Banking branches in the first quarter, and the impact of the discount rate cuts last year, resulted in the Bank posting a loss of Rs 219 million for the quarter. However, with the revenue pipeline from new businesses and the existing product portfolio, the Bank is well positioned to increase revenues and declare profits for the full year 2013. PR