STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated October 04, 2003

 

This week the KSE-100 index closed at 4,192 level or 29 points above last week's closing. However, the intra day movement of index throughout the week was full of spikes. Many retail investors had lost their life savings in the past, but this time some of the brokers are also in trouble. There is a small piece of advice or the small investors that they should stay away from the market till the time the dust settles. They should not get upset because economic fundamentals or corporate earnings have not dwindled.

 

 

 

MARI GAS COMPANY

The company mainly supplies gas to the three urea manufacturing plants owned and operated by Fauji Fertilizer Company and Engro Chemical Pakistan. Since the consumption of gas by these plants has not increased drastically, the increase in sales can only be attributed to hike in gas (feedstock) resulting in colossal increase in profit after tax, going up from Rs 395 million for the year 2002 to Rs 830 million for the year ending June 30, 2003. Net sales went up from Rs 1,681 million to Rs 2,436 million. Since the figures of cost of sales is not given in the announcement one cannot calculate the increase or decrease in unit cost of gas produced by the company. Out of a profit after tax of Rs 830 million the Board of Directors approved distribution of a total of 30% dividend among the shareholders amounting to Rs 100 million only.

SUI SOUTHERN GAS COMPANY

The company has posted Rs 1,448 million profit for the year ending June 30, 2003 as compared to a profit of Rs 1,435 million for last year. The Board of Directors approved distribution of 18% dividend as against a payout of 17.5% for the previous year. The improvement look disappointing because of the growth in net sales, going up from Rs 32,235 million to Rs 34,836 million. However, the benefit of increase in sales was lost due to hike in cost of sales, going up from Rs 22,217 million to Rs 28,061 million. Transmission and distribution and financial charges grew from Rs 4,702 million to Rs 5,172 million. There was only marginal improvement in operating profit. Though profit before tax or year 2003 was lower than last year profit after tax improved due to lower provision for tax.

TELECARD

Despite posting an EPS of Rs 3.65 the Board of Directors of company didn't approve distribution of dividend among the shareholders at the time of approval of annual accounts. The company has posted Rs 183 million profit after tax for the year ending June 30, 2003 as compared to a profit of Rs 119 million for the last year. Sales grew from Rs 758 million to Rs 1,084 million. However, the hike in cost of sales eroded the advantage of increase in sales. Cost of sales and services went up from Rs 469 million to Rs 730 million. There was also increase in administrative and selling expenses, going up from Rs 111 million to Rs 157 million. The increase in other income and decrease in financial charges provided some respite.

GENERAL TYRE & RUBBER COMPANY

The company has posted Rs 334 million profit after tax for the year ending June 30, 2003 as compared to a profit of Rs 245 million for last year. The Board of Directors also approved distribution of 20% dividend among the shareholders. The company and paid a total of 50% dividend for the year 2002. However, it is worth noting that in terms of absolute number of rupees 20% dividend amounted to Rs 119 million, whereas 50% dividend amounted to Rs 85 million. The boost in profit was mainly due to higher sales, going up from Rs 1,906 million to Rs 2,239 million. Cost of sales also went up from Rs 1,479 million to Rs 1,709 million. Operating expenses grew from Rs 158 million to Rs 185 million. However, financial and other charges came down from Rs 52 million to Rs 39 million. Provision for tax also went up from Rs 70 million to Rs 138 million.

 

 

KOHAT CEMENT COMPANY

Profit after tax for the year ending June 30, 2003 took a nose dive and amounted to Rs 17 million as against a profit of Rs 108 million for last year. The EPS came down from Rs 4.94 for the year 2002 to Rs 0.75 for the period under review. Despite such a meager profit the Board of Directors approved distribution of 15% dividend amounting to Rs 33 million. The company has paid 35% dividend for the year 2002. This decline in profit can only be attributed to the hike in cost of goods sold, going up from Rs 690 million to 860 million. Sales were also lower as compared to last year. Another factor contributing to reduction in profit was the increase in administrative, general and selling expenses, going up from Rs 40 million to Rs 69 million.

ATIONAL LEASING

The company having the longest history of leasing business still seems to be in trouble due to heavy provision against lease losses, doubtful recoveries and financial charges. It has posted Rs 20.6 million profit before tax for the year ending June 30, 2003. However, one may term it a turnaround because the company had posted Rs 73.2 million loss before tax for the year 2002.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.T.C.L.A

38.75

36.70

38.35

227,731,000

P.S.O. SPOT

289.00

272.55

282.00

117,828,400

D.G.K.Cement

40.60

34.90

40.60

92,322,500

Fauji Cement

10.95

10.00

10.95

90,416,000

Pak Oilfields

343.00

323.70

342.00

50,092,200

National Bank

48.60

46.40

48.60

49,119,500

Pak.PTA Ltd.

12.30

9.95

12.30

39,920,500

Hub Power

39.10

37.00

39.00

21,001,500

Bosicor Pak

29.45

26.60

29.00

19,413,000

Shell Pak

395.00

390.00

395.00

76,100