Banks are having the time of their lives. That too, in a scenario where spreads are depressed; conditions are still not conducive for lending and a vigilant central bank is keeping an eye on spreads earned by banks. All thanks to banks’ own efforts to rationalize the deposit mix, but a bigger thanks to the borrower that is the government.
The economic trade-off between money and time endures. There will always be folks with a lot of money but little time. And there will be folks with little money but a lot of time. In the current technological era, the economic exchange taking place between these two has given rise to what is been referred to as an “on-demand economy”.
Don’t let the lower earnings fool you; Maple Leaf Cement has posted solid performance in the first nine months of this fiscal. Prices of both varieties of cement held firm and sales rose aggressively through the recently concluded quarter. The top line grew nine percent in 3QFY15 when compared to 3QFY14, and the sales tally for 9MFY15 has now grown to Rs15.06 billion.
In contrast to other big textile mills, Kohinoor has managed to hold its ground in a highly non-conducive environment. The company reported robust financials for the nine months ended FY15, despite a mere 3 percent year-on-year improvement in 9MFY15 sales, and a nominal 1 percent increase in 3QFY15 top line.
Even in the face of soaring raw material prices that weighed heavily on its gross margins, National Foods (KSE: NATF) has managed to post solid earnings growth in 9MFY15. The growth was made possible by increase in sheer volumetric sales as the company has been giving considerable attention to an aggressive and multi-dimensional focus on brand building and customer interception activities.
Pakistan Suzuki Motor Company is off to a flying start in the first quarter of 2015. The same exogenous factors that supported gross margins in CY14, have stayed in the company’s favour to-date. International prices of steel are still soft and the Japanese Yen has devalued by about 18 percent against Pakistani Rupee over the past year. But unlike previously, car sales also witnessed a raging boost in 1QCY15.
With apparent reason of low oil prices, the oil and gas exploration and production companies have seen a clip in their earnings in 9MFY15. Pakistan Petroleum Limited is yet another oil and gas company that has seen a fall in its profitability during the first nine months of FY15.