Last update: Sun, 14 Feb 2016 09pm

BR Research: Miscellaneous


Lately there is a political tussle between PML-N and PTI on the amount of tax being collected on petroleum products and the debate is that what should be the price charged to consumers. Since the oil prices nosedived; had the government kept taxation (sales tax and duties) at the levels they were when prices were at peak, the loss of revenue would have been huge.
At the launch of his book titled "Globalization, governance and growth", Dean and Director of Institute of Business Administration (IBA) highlighted that out of the four pillars of globalization - trade, capital, technology, and migration and remittances - Pakistan is only benefiting from remittances. Well, it looks like this benefit too has just started to wane in the wake of historically low crude oil price.
The quarter ending December 2015 has done it for NetSol Technologies Limited (KSE: NetSol). After lurking in loss-making territory for over two years, now the Lahore-based software-maker is back in black. The firm had closed FY15 with a net loss of Rs187 million; now the half-yearly results suggest that the ongoing year would most likely finish with solid profitability.
The falling crude oil prices are something that the exploration and production companies hope against. In the falling oil price environment, the E&P sector posted a dreary picture of its financials for the first quarter of FY16, registering a massive decline in the earnings.
The refinery segment saw a respite towards the end of FY15 in shape of improving currency stability and gross refining margins and spreads. Improvement in GRMs is the key in a refinerys financial performance. %D%AHowever, the improvement was cut short in the first three months of FY16 due to currency depreciation, sliding crude oil price, and falling margins.
On back of impressive earnings release, shares of Jubilee General Insurance (PSX:JGICL) climbed 1.3 percent on Thursday - a session that saw the benchmark index dip one percent. The countrys third largest non-life insurer saw healthy growth in key metrics, higher than in recent years.
Shareholders of Pakistan Telecommunication Company Limited (KSE: PTC) would have surely liked the 20 percent total cash dividend (Rs2 per share) the PTC groups management would pay out as cash dividend. However, the telecom giants falling profit margins might have dampened their spirits for the year ahead.