STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated March 06, 2004

 

AT the best the week under review can only be termed 'lackluster' despite announcement of good results by some of the volume leaders. The companies belonging to cement and commercial banking sector. Shares of companies belong to auto sector came under pressure but recovered quickly. HUBCO's interim dividend announcement was in line with analysts' forecast. ICI Pakistan declared higher dividend as compared to last year despite posting lower profit. The forthcoming weeks are also devoid of any news which can help the KSE-100 cross 5,000 level.

 

 

ICI PAKISTAN

 

 

The company has posted Rs 766 million profit after tax for the year ending December 31, 2003 as compared to Rs 1,855 million for last year. Despite reduction in profit, the Board of Directors approved higher dividend payout at 25%., whereas 22.5% dividend was paid for the year 2002. The reduction is profit can be attributed to higher cost of goods sold. Net Sales grew from Rs 12,219 million to Rs 18,127 million. As against this, cost of goods sold went up from Rs 9,892 million to Rs 15,463 million. Along with this increase in administrative and selling expenses, going up from Rs 1,250 million to Rs 1,577 million, further eroded profit. Reduction in financial and other charges helped in further erosion of profit.

DEWAN SALMAN FIBRE

After a long period the company has posted good results. The company has posted Rs 171.5 million profit after tax for the July-December 2003 period as compared to about Rs 12 million profit for the corresponding period of year 2002. The improvement in bottom line can be attributed to higher sales and better maligns. Further improvement was contributed by reduction in financial charges. Net sales grew from Rs 7,708 million to Rs 8,520 million. Gross profit went up from Rs 855.7 million to Rs 920.6 million. Administrative expenses went up from Rs 216.9 million to Rs 298.6 million. However, the increase in financial expenses was more than compensated by the reduction in financial charges, going down from Rs 595 million to Rs 399 million. However, the Board of Directors did not approve payment of any interim dividend.

DEWAN FAROOQUE MOTORS

The company has posted Rs 79 million profit after tax for July-December 2003 as compared to Rs 29 million profit for the corresponding period of last year. This improvement in bottom line can be attributed to higher sales and lower financial charges. Net sales grew from Rs 2,034 million to Rs 2,622 million. Cost of goods sold went up from Rs 1,780 million to Rs 2,345 million. operating expenses also went up from Rs 151 million to Rs 172 million. Financial charges came down from Rs 109 million to Rs 35 million. The scrip has witnessed significant increase in daily trading volume. However, the Board of Directors did not approve distribution of any interim dividend.

TELECARD

Despite increase in sales during July-December 2003 period the company has posted lower profit as compared to corresponding period of last year. Profit after tax declined from Rs 81 million to Rs 53 million. EPS came down from Rs 1.62 to Rs 0.32. The reduction in profit can be attributed to hike in cost of goods sold. Sales grew from Rs 504 million to Rs 784 million. As against this cost of goods sold went up from Rs 332 million to Rs 587 million. The other factors contributing to reduction in profit are increase in administrative and selling expenses and around 50% increase in financial charges.

PIONEER CEMENT

The company has posted Rs 33 million profit before tax for July-December 2003 as against Rs 50 million loss before tax for the corresponding period of year 2002. This improvement in bottom line can be attributed to increase in net sales and decrease in cost of goods sold. However, financial charges went up from Rs 92 million to Rs 120 million eroding the advantage of higher gross profit. Sales went up from Rs 50 million to about Rs 600 million. Cost of goods sold came down from Rs 427 million to Rs 406 million due to the switch over from furnace oil to gas. The EPS improved from negative Rs 0.56 to positive Rs 1.49. However, the shareholders will not be able to receive any dividend for many more years as the company carries the huge burden of accumulated losses, amounting to Rs 690 million.

 

 

WORLDCALL COMMUNICATION

The company has posted marginally lower profit after tax for July-December 2003 despite substantial increase in gross profit as compared to corresponding period of last year. Sales went up from Rs 840 million to Rs 942 million. Cost of sales grew from Rs 565 million to Rs 686 million. Operating cost went up from Rs 107 million to Rs 132 million. The reduction in other income and dividend income further eroded the profit. Other income came down from Rs 51.4 million to Rs 34.6 million. Dividend income took a nose-dive from Rs 19 million to slightly less than Rs 2 million.

Company High  Low Closing Week's Turnover

D.G.K Cement

47.60

45.20

47.60

80,087,000

P.T.C.L.A XD

39.75

39.70

39.75

38,639,000

Hub Power

37.35

37.25

37.35

33,111,500

Dewan Salman

24.55

24.05

24.55

24,123,000

Sui Southern Gas

32.25

32.00

32.00

15,703,500

National Bank

57.50

56.60

57.30

12,196,800

Dewan Motors

32.65

32.35

32.50

7,386,500

I.C.I.

82.05

81.15

82.05

2,244,300

Pak PTA Ltd.

17.45

17.25

17.35

2,132,000

M.C.B. SPOT

49.65

49.00

49.65

1,521,600