STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Apr 24, 2004

 

The KSE-100 index witnessed downward drift during the week and closed at 5407 level. The market, particularly intra day movement of the index, remained highly volatile throughout the week. The erosion in the index was mainly due to across the board fall in prices of most of the volume leaders. According to some analysts, the fall in index should not be a concern because technical correction was long overdue. The Badla investment was touching all time high and it is still on the higher side. Therefore, further erosion in the index is inevitable. The scrips belonging to cement sector are expected to witness further erosion in value.

 

 

 

 

INDUS MOTOR COMPANY

The company has released its Jan-March 2004 quarter results showing a decline of 22% from its earnings for the corresponding period of last year. However, nine-month profit after tax showed an improvement of 35% to Rs 1,079 million from Rs 801 million. Sales for the quarter under review were higher as compared to the figures of corresponding period of last year but profit before tax was lower due to increase in cost of goods sold. Sales grew from Rs 4,082 million to Rs 5,711 million. As against this cost of goods sold went up from Rs 3,500 million to Rs 5,143 million. A closer look at nine-month results shows an over all improvement in the performance of the company. The level of improvement can be gauged from improvement in EPS, going up from Rs 10.19 to Rs 13.72. The single factor responsible for the improvement in profit margin is the overwhelming response from both Corolla and Cuore. The current plant capacity is said to be 26,000 units/annum and analysts believe that it will be expanded to 36,000 units within next 12-18 months to improve the delivery schedule.

HUBCO

The company has posted Rs 1,529 million profit for Jan-March 2004 quarter as compared to Rs 1,622 million profit for the corresponding period of last year. The fall in profit can be attributed to the decline in turnover, going down from Rs 5,757.5 million to Rs 4,170.8 million. However, erosion in bottom line was contained due to reduction in financial charges, going down from Rs 639 million to Rs 537 million. A closer look at nine-month operations also shows similar trends. Turnover declined from Rs 14,786 million to Rs 10,463 million. Net profit also came down from Rs 4,502 million to Rs 4,113 million. Selling and administrative expenses went up from Rs 147 million to Rs 167 million. The fall in other income, going down from Rs 327 million to Rs 85 million, also contributed to lower profit. During the ongoing financial year, the company has paid Rs 1.60 per share as interim dividend, whereas for the corresponding period of last year Rs 3.30 per share was distributed among the shareholders.

DAWOOD HERCULES CHEMICALS

The company has released financial results for Jan-March 2004 quarter posting Rs 98.8 million profit after tax as compared to Rs 54.5 million profit for the corresponding period of last year. This improvement in bottom line can be attributed to the rise in other income and lower provision against tax. Otherwise gross profit for the period under review had gone to Rs 45.8 million from Rs 89.7 million for the corresponding period of last year. The decline in gross profit was due to the fall in sales, going down from Rs 392.5 million to Rs 318.4 million. Other income went up from Rs 23.6 million to Rs 103.7 million. Tax provision declined from Rs 24 million to Rs 6 million. No announcement was made regarding distribution of any interim dividend.

PAKISTAN REFINERY

The refinery has posted Rs 646 million profit after tax for Jan-March 2004 quarter as compared to Rs 920 million profit for the corresponding period of last year. The fall in profit can be attributed to reduction in gross profit due to the decline in sales. Sales came down from Rs 22,134 million to Rs 19,994 million. Gross profit went down from Rs 1,515 million to Rs 1,131 million. However, the erosion in profit was contained due to reduction in operating expenses and financial charges. Operating expenses declined from Rs 77 million to Rs 72 million. Financial charges came down from Rs 48 million to slightly less than Rs 14 million.

RECKITT BENCKISER

The company has posted Rs 53 million profit after tax for Jan-March 2004 quarter as compared to Rs 24 million profit for the corresponding period of last year. EPS improved from Rs 0.75 to Rs 1.65. The improvement in bottom line can be attributed to growth in sales and improvement in gross profit. Sales grew from Rs 600 million to Rs 742 million. Gross profit improved from Rs 233 million to Rs 321 million. However, the benefit of improvement in gross profit was partly eroded due to increase in selling and administrative expenses and other charges. Selling and administrative expenses went up from Rs 195.5 million to Rs 233.5 million. Other charges grew from Rs 5.9 million to Rs 9.8 million.

Company High  Low Closing Week's Turnover

Oil & Gas Dev.

71.25

67.15

67.70

617,954,900

Fauji Cement

18.25

15.45

16.45

348,831,500

P.T.C.L.A XD

44.85

42.85

42.85

240,078,000

Fauji Fert Bin

23.20

21.45

21.50

190,595,500

National Bank SP

78.15

65.50

71.20

177,468,200

M.C.B. XB

60.00

57.00

57.00

119,272.100

Adamjee Ins

109.85

102.20

104.40

40,039,700

Fauji Fert

131.75

125.10

128.45

31,278,900

Pak Oilfields

223.15

198.55

198.55

27,783,800

P.S.O. XD

284.00

272.00

272.00

25,351,100