Last update: Fri, 29 Apr 2016 11am

BR Research: All


Having performed brilliantly in 2015, Nestle Pakistan Limited (NESTLE) announced its financial result for the quarter ended March 31, 2016, on Monday. It was a mixed bag. As per the notice to the PSX, the Pakistani subsidiary of the worlds largest Food and Consumer Goods Company reported a net profit of Rs3.44 billion for the quarter, a six percent year-on-year decline from the same quarter of the last year.
The manifesto and claims of PMLN government revolve around promoting businesses in Pakistan; but Dar’s economic management is somehow making existing tax paying sectors unhappy. The taxation policies are skewed towards indirect taxation and within the purview of direct taxes, the inclination is on WHT and minimum taxes which are effectively indirect taxes.
Prevailing low oil price environment continues to impact OGDC's financial performance. As a result of low oil prices, the E&P company's average realised prices recorded for crude oil and gas were $38.83 per barrel and Rs256.23 per million cubic feet - a fall of 41 percent and six percent year-on-year, respectively. Oil and Gas Development Company Limited's top line was lower by almost 25 percent year-on-year. However, some support to the revenues came from increase in average exchange rate from Rs/ $101.98 in 9MFY15 to Rs/ $104.45 in 9MFY16.
That UBL managed to post year-on-year growth in 1QCY16 profits is testament to how well the bank has managed to cope with challenging market conditions. The 4 percent year-on-year growth in pre-tax profit may not be huge, but when seen in perspective, seems a job well done. The bank's balance sheet expansion is showing the results on the income statement.
Allied Bank Limited (ABL) is in very fine shape. The bank posted its 1QCY15 earnings yesterday, accompanied with an interim dividend of Rs1.75/share. The after-tax profits soared by an impressive 14 percent year-on-year, despite negative top line growth. ABL?s CASA, cost-to-income, infection and coverage ratios are amongst the very finest in the industry.
K-Electric Limited's (PSX: KEL) share price has grown by 178 percent over the past five years, and its earnings have remained resilient since 2012. Its revenue has increased at a CAGR of 9.6 percent between FY09 and FY15 on the back of decreasing transmission and distribution losses, increasing average revenue per unit billed and decreasing fuel price environment.
Nishat Mills Limited has really pulled one out of its hat; for the nine months ended FY16, the company?s top line fell by 7 percent year-on-year, yet lower costs yielded a 7 percent growth in gross profit. The bottom line shot up by 35 percent over the period.