Last update: Sun, 26 Jun 2016 11pm

BR Research: All


Principles of corporate governance do not exactly apply on political parties. But, it is increasingly becoming evident that it wouldn't hurt if political parties in Pakistan were to take a leaf or two from the corporate governance framework. It will probably be good for their image, and, well, possibly for their survival, too.
Its not looking good for WorldCall Telecom (KSE: WTL). The Lahore-based telephony and broadband firm had recorded a whopping net loss of Rs2.3 billion last year (CY13). Now, it has closed the half year ending June 2014 with another net loss, of Rs818 million.
The recent taking over of Lafarge by Bestway Cement (KSE: BWCL) seems to make more sense in the light of the latters financials. Indeed, the company's margins have shown significant strides, with net earnings showing an impressive 35 percent increase. The company has also announced a dividend of Rs2.5 per share for the year end.
The dip in automobile sales during FY14 naturally left a bearing on Agriauto Industries Limited (KSE: AGIL). This is evident from net sales of AGIL which show the most notable shift in the financial results announced by the company.
Much like every other sphere of life, in politics too, people only see what they want to see. Knee-jerk reactions at the stock market are also often a result of similar thinking. But, sooner or later, reality sets in and shaves off flawed perceptions.
Like most things in Pakistan today, the fate of Gas Infrastructure Development Cess (GIDC) is uncertain at best. The Supreme Court has reportedly annulled the cess terming it unconstitutional, ordering the authorities to reimburse the amount collected. Whether or not, actual reimbursement takes place is another story; but, it is sure to have an impact on the fertiliser industry dynamics.
The circular debt has crossed the Rs500 billion mark; thanks to increasing power sector receivables. And as per media reports, the growth in receivables is staggering as they jumped up by around four percent month on month in only one month, i.e. July 2014. Normally rising circular debt level starts haunting petroleum sales particularly that of furnace oil, when circular debt rises, power generation decreases and the fuel suppliers like PSO, APL and Shell lose sales volumes.