The recent two-month stock rally in EFU Life Assurance - the second major giant in the life insurance segment - led many to believe that something incredible is about to crop up. However, on Friday, the firm’s management spoiled all those hopes by announcing negligible growth in bottomline profits in 2013. Resultantly, the scrip lost its luster by shedding 5 percent in a single day on Friday – the biggest single-day drop since March 2013.
Consistency matters for any company!Although EFU General Insurance has been on a drive to post consistent profitability records since 2010 (see graph), the recent financial results announced by firms management on Friday represented a contrasting story, where the bottomline went down by 11 percent year-on-year - a downturn that came into sight after two years of exceptional performance.
Earlier when the National Power Policy 2013-18 was promulgated, the column talked about how the petroleum sales were bound to shoot. Reason being while fixing the lopsided generation mix of the energy sector takes its time, the government will have no option but to continue having the expensive lot as fuel to feed the national grid.
National Investment Unit Trust (NIUT)--the mutual fund industry tycoon announced its 1H FY14 results yesterday, where a glimpse at the financial results portrays a turnaround story of its funds and the results of NIUT (equity fund) in particular surely deserves a pat on the back.
From amongst the major IPPs, Nishat Power Limited (NPL) started the ball rolling with its financial performance for 1H FY14 announced yesterday. And unlike the stocks performance against the KSE100 index, there was nothing too exciting about its financials.
Its interesting how a firm in the price-controlled pharma sector is able to increase its profitability over the years. Abbott Pakistan--whose 77 percent revenues come from the pharma segment--yesterday announced 21 percent growth in net profits for the year ended December 2013.