Last update: Wed, 01 Jun 2016 12pm

BR Research: All


Last two years have been quite impressive for International Steels (KSE: ISL). After turning around to profitability in FY13, ISL has been boasting impressive growth since then. According to the financial result announced yesterday, the company closed FY14 on a positive note as its bottom line surged by a massive 90 percent.
It was a show of political optics yesterday when the Planning Commission (PC) Deputy Chairman announced Vision 2025 at the time when it seems uncertain whether the government will continue even for ten days. The salient features and targets seem more of a wish list without having any concrete plan to implement and execute it.
Quite timing! Just as PM Nawaz Sharif and his Vision-walas were announcing the much-hyped Vision 2025, share prices at Karachi Stock Exchange were dropping like flies. By the closing bell, the benchmark index had lost a colossal 1,310 points; a never ever seen before event in the 20 years’ history of KSE-100 index. The biggest ever slide before yesterday was the fall of 696 points in December 2007; so you can imagine the psychological shock.
Despite the launch of the new WagonR model, Pak Suzuki Motor Co’s (KSE: PSMC) earnings remained subdued during the Apr-Jun period, owing to higher payables. The latest company results show that gross margins posted an increase of 50 percent for the half-year and over 34 percent for the quarter ended June 2014.
The ad hoc basis and lack of planning cannot be better explained the way government is handling the energy woes. It started the tenure with clearing the circular debt (a temporary solution) of nearly Rs500 billion. It had created additional supply immediately, but a year down the road, circular debt crossed Rs400 billion and the energy supply-demand gap has been widened even more than it was then—back to square one. Surprised?! Don’t be! Because this is what that was bound to happen anyways.
Easy come, easy go. Profit repatriation by foreign investors is gradually making its presence felt, though not many people are noticing.
It seems that post-election legitimacy issues are not unique to Pakistan. In recent months, elections in Indonesia and Afghanistan have ended up in strife. It warrants an examination of how these two countries have approached the issue. Maybe, Pakistan can learn a thing or two from them.