By M Yasir · Wednesday, Apr 25, 2012 3 Comments
Indus Motor Company (IMC) booked profits of Rs 290 Crore in nine months of the current fiscal year (9MFY12) as compared with Rs1.6 billion, registered a handsome year-on-year growth of 81% on increasing cars sales.
Indus Motors introduced the much anticipated Hilux Vigo Champ, a more than Rs 2.2 million worth automobile
As per data, the combined sales of Toyota and Daihatsu brands (CKD & CBU) for the quarter ended March 2012 stood at 15,002 units, compared to 15,084 units sold in similar period last year, showing a sustainable situation.
But the production has increased by 4.7 percent to 15,677 units as against 14,969 units produced in the same period in order to meet the rising demand of the local market in the future.
On year to date basis, the combined sales of Toyota and Daihatsu brands (CKD & CBU) grew 3.6% only to 39,343 units compared to 37,987 units for 2011.
The company’s combined sales revenue for the 9 months ended March 2012 stood at Rs. 5,390 Crore. The earnings increased by an impressive 36 percent mainly because of the growth in net sales rising by 32 percent, increased prices and improved gross margin stood at 8.5 percent.
On the other hand, Other Income remained flat at Rs 40 Crore. In third quarter alone, the earnings clocked in at Rs14.35/share, up 62%YoY, inline with an estimate of Rs14.5/share.
Indus Motors introduced the much anticipated Hilux Vigo Champ, a more than Rs 2.2 million worth automobile, with an automatic transmission for the first time in Pakistan which is well received by the market. The most favorite cars of customers remained Corolla and its different variants.
The past quarter performance was robust and we expect demand for our products in market to remain strong in view the customers’ preference for our range of Toyota products and services, Indus Motors’ spokesperson said while commenting on quarterly performance and future outlook.
By M Yasir · Tuesday, Apr 24, 2012 1 Comment
A dramatic situation emerged at Engro Corporation on Tuesday as one board member of the organization has been promoted to be its head and one had to go home in protest.
Mr Muhammad Aliuddin Ansari, new CEO of Engro Corporation
Aliuddin Ansari has been appointed as new CEO and President of Engro Corporation. The news of his appointment propped up few hours after EconomyAge first reported resignation of Khalid Mansoor, CEO of Engro Fertilizer, which upside down the corporate and business world.
It is matter of fact that the new head is junior having little association with Engro group compared with Khalid Mansoor, who was senior board member and considered as crucial part of the organization for long time.
Khalid Mansoor has been board member since 2005. He was a Senior Vice
President of Engro Corporation Limited since January 2012 and two subsidiaries of the conglomerate– Engro Fertilizers Limited and Sindh Engro Coal Mining Company.
However, Aliuddin Ansari is one of the directors of Engro Corporation and has been associated with the company since 2009.
Sources in the company told EconomyAge on condition of anonymity that Khalid was resigned while citing personal reasons but he had been in tense relationship within organization board members, which became a hurdle in his way to become Engro head.
Engro, a Pakistani Conglomerate worth in Billions, has been in trouble for all the Wrong Reasons
The whole situation was grimed after Asad Umar left the company to
join Pakistan Tahreek-i-Insaaf recently.
Aliuddin Ansari, the new President CEO, was CEO of Dewan Drilling, Pakistan’s first independent Oil & Gas drilling Company. Ansari started his career as an Investment Manager at World Invest and Bank of America in London. He has also served as the CEO of AKD Securities and COO, Emerging Europe for Credit Lyonnais Securities.
He is also on the Board of National Clearing Company of Pakistan, Sindh Engro Coal Mining Company (SECMC) and Dawood Hercules Corporation Limited and former Karachi Stock Exchange.
By Ali Ahmad · Tuesday, Apr 24, 2012 5 Comments
According to highly reliable source of EconomyAge, Engro Fertilizer, a subsidiary of Pakistan’s Proud Engro Corporation has lost its President and CEO, Khalid Mansoor.
Khalid was also the President & CEO of Sindh Engro Coal Mining Company, a troubled project of Engro due to tensions between Ex-CEO and Asad Umar.
Although there has been no notice from Engro Fertilizer to Karachi Stock Exchange but EconomyAge’s highly reliable sources confirmed.
This might be shocking for Engro’s investors and may be for general public as well after Engro losses its second boss within a week after Asad Umar left and join Imran Khan’s PTI.
Khalid Mansoor holds a degree in Chemical Engineering with distinction and honors. He is a Senior Vice President of Engro Corporation Limited and since January 2012 also serves as the President & Chief Executive Officer of Engro Fertilizers Limited.
Previously he was the Chief Executive of Engro Powergen Qadirpur Limited, and Engro Powergen. He is also a Director of Engro Polymer & Chemicals Limited. He has held various key assignments at Engro and with Esso Chemical Canada including development and execution of various major expansion projects. He joined the Board in 2006.
It would be interesting to note that Khalid was also the President & CEO of Sindh Engro Coal Mining Company, a troubled project of Engro due to tensions between Ex-CEO Asad Umar and PPP government.
By Ali Ahmad · Tuesday, Apr 24, 2012 4 Comments
Smoking is definitely bad for health but way too good for business. Pakistan Tobacco Company, which is interestingly the very first multinational to begin its operations in Pakistan immediately after the independence, made Rs 37 Crore in first three months of 2012. 
Pakistan Tobacco, a highly vertically integrated company which is involved in cigarette production, from crop to consumer, successfully sold Rs 1,770 Crore of Cigarettes in just three months of 2012. Revenues increase by almost 9% in as compared to Rs 1,645 Crore in same quarter of 2011.
Company paid Rs 911 Crore and Rs 252 Crore in Excise Duties and sales tax which left only Rs 606 Crore in net revenues for the company. On one hand, where Pakistan Tobacco’s investors are left only with Rs 37 Crore, Govt made Rs 1,182 Crore in form of duties and different taxes.
The highest increase occur in selling and distribution cost which reaches at Rs 89 Crore in first quarter as compared with Rs 50 Crore in same quarter last year. It would be interesting to note that Cigarette companies are not allowed to advertise in print and, or, electronic media.
Company owned major famous brands of cigarettes in Pakistan including Dunhill, Benson & Hedges and John Player Gold Leaf, the largest selling brand of Pakistan Tobacco.
By Nabila Mujtaba · Tuesday, Apr 24, 2012 1 Comment
Sonari Bank, which made around Rs 78 Crore in last year 2011, already made Rs 49 Crore in first three months of 2012. This is almost and already 63% of last year’s profit or to put it in months, this is what Soneri Bank made in 7 months in last year. 
Is it time for investors to keep Soneri Bank’s share price in target? Well, the financials are indicating that this might be another Best year for Banking Industry.
Soneri’s interest income reaches to Rs 339 Crore, almost Rs 111 Crore every month, in first quarter of 2012, an increase of 14% compared with Rs 297 Crore in first quarter of 2011.
Last year, Soneri Bank also made a right issue amounting to Rs. 100 Crore and also declared 12.5 percent bonus shares to its shareholders increasing the paid up capital to 800 Crore in compliance with the Statement Bank‘s Minimum Capital Requirement, thus saving itself from any potential target for an acquisition.
Earning per share was Rs 0.55 per share in first quarter as compared to Rs 0.34 per share in same quarter in 2011.
By M Yasir · Monday, Apr 23, 2012 10 Comments
After commencing 2012 on a rising note as January and February recorded 19 % and 12% month-in-month (MoM) growth, , the size of the Pakistan’s mutual funds industry recorded a decline of 8 % month on month during March 12, settling at Rs33,000 Crore down from Rs 36,000 Crore a month-ago. 
The major fall causing overall industry decline was witnessed in the size of income funds and money market funds categories, which went down 16% MoM and 13 % MoM, respectively.
Based on asset manager’s AUM (Assets Under management) in March 2012, the major decline was witnessed in the size of ABL Asset Management Company’s AUM, which fell by an absolute amount of Rs 1800 Crore, down 28.3 percent MoM, followed by Askari Investment Management’s AUM descending by Rs 740 Crore, down 35.5 percent MoM and UBL Fund Managers’ AUM slipping by Rs 340 Crore.
Out of the industry’s total decline of Rs 3,000 Crore in March, almost Rs 28,900 Crore, which is 97% of the industry decline was contributed by these three Asset Management Companies in March. Excluding these, industry size showed a marginal decline of around Rs 980 million or 0.3% MoM in March.
The decline in industry size was not unusual and believed to be consistent with the ‘quarter-end factor’ when banks/financial institutions pullout or redeem their investments to shape-up their balance sheet and returns before the period end.
As far as category-wise performance is concerned, the size of the open-end funds rose 15% on quarterly basis in January to March, reaching Rs 30,700 Crore while that of the closed-end funds stood at Rs 2,300 Crore, showing an appreciation of 17% on quarterly basis.
In nine month of current financial year 2011-12 (Jul-Mar12), the industry now stood with a huge cumulative growth of 32%, as per statistics made available to EconomyAge.
With additional input from Mr Ali Ahmad
By Ali Ahmad · Saturday, Apr 21, 2012 4 Comments
According to some media reports, NIB Bank gave an unprecedented relief to Galaxy Textile Mills, owned by Mr Feroz, husband of Pakistan’s Foreign Minister Hina Rabbani Khar. 
If reports are to be believed, NIB Bank rescheduled Galaxy’s short and long terms loans, taken six years back, of Rs 19 Crore for next 10 years and to put cherry on top of this deal, all of the markup has been waived.
“After deal, totally against bank rules and regulations, between Galaxy Textiles Mills and NIB Bank, all loan default cases in banking courts and Lahore High Court have been withdrawn,” it added.
The loan of Rs. 13 Crore was taken from PICIC Commercial Bank and Pakistan Industrial Credit Investment Corporation Limited on short term and long term basis. The borrowers include Hina Rabbani Khar’s father in law Arif Gulzar, spouse Feroz Gulzar and brother in law Asad Gulzar.
Later both the financial institutions were merged as NIB Bank with approval of State Bank of Pakistan.
According to reports, about Rs. 10 Crore of debt were taken from PCBL in different dates and for different time period. The debt had to be paid back till July 31st, 2007, but it was not paid by Gulzar family.
Similarly a long term debt of Rs. 9.8 Crore was borrowed from PICIC Bank which was to be paid till January 2007. Afterwards, on request of Arif Gulzar and Feroz Gulzar, debt was rescheduled in 18 installments, but it was still not paid.
If I ask someone whether this rescheduled loan of Rs 19 Crore will ever be paid? It would be a stupid question to ask. After all, ‘Who really cares and who will really remember after ten years?’.
But what we can ask: Is NIB Bank guilty of rescheduling loans like this given their swelling losses?
By Nabila Mujtaba · Saturday, Apr 21, 2012 2 Comments
Unilever Pakistan, country’s largest consumer company, made Rs 100 in first three months of 2012, a growth of 16% during January to March 2012, which is much higher than the growth in sales of 11%. 
Net profit stood Rs 100 Crore in the first the quarter of 2012 against Rs 90 Crore in the same period a year ago, according to a notice sent to the Karachi Stock Exchange on Wednesday. Many stock Analysts had cited tough economic conditions along with acute energy shortages to cascade profits in their 2011 review, however, these did not seem to make an impact on Unilever.
Gross margins improved as a result of cost absorption and well-timed price corrections to mitigate the impact of higher input costs, the company management said in a notice. All the cost hikes were passed to end consumers which, as it looks from the profits, happily accepted it.
The maker of more than 50 brands from Lipton to fair and lovely to Knorr soup, managed the stellar growth despite 14% increase in advertising and promotion expense to Rs 43 Crore following introduction of nine new brands since the same period last year.
The company’s board of directors also declared the first interim dividend of Rs 65 per ordinary share of Rs50. Stock price rose 0.7% to close at Rs5971.83 per share during trade at the Karachi Stock Exchange.
Growth of the tea business, which represents 30% of total Unilever sales, has been affected by smuggling in recent years as only half of the tea consumed in the country is officially imported. Two of the biggest tea brands in the country Lipton and Brooke Bond Supreme are made by Unilever.
By Nabila Mujtaba · Saturday, Apr 21, 2012 0 Comments
Shell switched from making profits to a loss in the first quarter of 2012 amid unpaid and swelling government dues and lower profit margins. All the hopes expressed by the CEO in 2011 financial statements falls flat. 
The government does not provide adequate returns to fully cover the cost of operations and financing, Shell Pakistan Chairman Sarim Sheikh wrote in a post-result review note sent to the Karachi Stock Exchange on Wednesday. Margins of diesel and petrol are regulated and fixed by the government.
Shell, which is Pakistan’s second largest oil marketing company posted a net loss of Rs 22 Crore in January to March 2012 against net profit of Rs 76 Crore in the same period an year ago.
Government receivables decreased during the quarter but still stood at a massive Rs12.6 billion on account of tax refunds and outstanding fuel subsidies. The company recovered Rs 110 Crore during the period under review.
Sales declined 11% to Rs 5,708 Crore in the three months ended March 31.
The company also cited minimum tax on turnover as another reason for the poor performance. The current rising price environment has led to increased tax liability with no corresponding increase in margin resulting in effective rate of corporate tax of more than 600% and unfairly eroding profit growth, said Sheikh.
By M Yasir · Saturday, Apr 21, 2012 3 Comments
The State Bank of Pakistan has allowed Waseela Microfinance Bank to commence business as a nationwide microfinance bank. State Bank of Pakistan earlier had issued a licence to the Bank against Rs 0.25 million however it has fulfilled its all requirement for showing its asset of Rs 100 Crore.
Before joining Waseela, Ghazanfar Azzam was CEO of Kashf and TCS Financial Services
The banking regulator has also approved the appointment of Ghazanfar Azzam as CEO of the bank and different board members from telecom and financial sector.
Waseela Microfinance Bank, a subsidiary of M/s. Orascom Telecom Holdings (OTH) Egypt in November 2011. It will become the 7th Microfinance Bank (MFB) to operate on nationwide basis whereas two MFBs are operating at district level presently
The commencement of business of Waseela Microfinance Bank will result in a significant increase in the market share of regulated microfinance banks (MFBs) within the overall microfinance sector.
This will also lead to the increased provision of inclusive financial services in the rural and remote areas of the country. It is believed that Waseela Bank with its sister organization Mobilink will launch a branchless banking through its agents stretched throughout the country.
Other microfinance banks operating in the country include Khushhali Bank Ltd., The First Microfinance Bank Ltd., Tameer Microfinance Bank Ltd (owned by Telenor), Pak Oman Microfinance Bank Ltd, NRSP Microfinance Bank Limited, Kashf Microfinance Bank Ltd, Apna Microfinance Bank Ltd, and Rozgar Microfinance Bank Ltd.
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