Cement sector profit up 13pc in FY14

LAHORE (OUR STAFF REPORTETR):  Despite increase in power tariffs, country’s listed cement sector posted 13% earnings growth in FY14 as net profits grew to Rs42b versus 37b in FY13. In FY13, profits grew 93%. While higher cement retention prices fuelled 12% growth in the sector’s net sales, declining finance costs (down 28% in FY14) due to smooth deleveraging and 49% increase in other operating income added more pace to the sector-wide growth in net earnings. According to the latest figures, though total sales volume of industry grew by meager 2% in FY14 (local sales up 4%, exports down 3%), cement sector was able to post topline growth of 12% to Rs196b as against Rs175b in the same period last year.

 The prime growth driver remained 13% rise in average local cement retention price, as it rose to Rs395/bag versus Rs348/bag in FY13. As a result, sector’s operating profits increased by 12%. The follow-through impact of this was also witnessed in pretax profits of the sector which increased by 18% to Rs56bn. However, this positivity was diluted by 400bps higher effective taxation, which eroded 6% profitability of the sector. On quarterly comparison, 4QFY14 profits are up 9% on pretax basis while down 2% on after-tax basis.

With increase in retention prices, sector’s gross profit margins were able to sustain higher power tariff and declined only by 95bps from 37.2% in FY13. Moreover, reduction in the leverage of the cement sector translated into 28% reduction in financial charges to Rs5.3b.

Car sales up 14pc in Sept

LAHORE (OUR STAFF REPORTETR):  Car sales including LCVs, Vans and Jeeps during Sept 2014 stood at 12,693 units in the country, up 4% compared to Aug 2014 sales of 12,258 units and up 14% compared to Sep 2013 sales of 11,166 units. However, during 1QFY15, sales are down 3% to 31,899 units compared to 32,841 units in the same period last year, mainly because of significantly low volumes in July 2014. Sales volumes were abnormally low in July 2014, on account of early buying witnessed in June 2014 due to increase in advance motor vehicle tax and imposition of advance income tax on transfer of motor vehicle in Federal Budget FY15.

Surge in Sept sales was expected after the launch of new model of ‘Corolla’ by Indus Motors (INDU). The improvement in Sept 2014 sales was expected and brings no change in our base case assumptions.

Amongst individual companies, PSMC sales declined to 6,204 units in Sept 2014, down 1%YoY and down 5%MoM. During 1QFY15, sales of PSMC declined by 5%YoY to 17,031 units compared to 17,966 units in 1QFY14.

Company witnessed decline of 27%MoM in Cultus to 917 units versus 1,257 units in Aug 2014. Wagon-R unit sales declined by 87 units to 258 units in Sep 2014. However, Mehran unit sales increased by 5% to 2,436 units in Sep 2014 versus 2,330 units in Aug 2014.

Indus Motors sold 4,691 units in Sept 2014, up 80% compared to 2,602 units in the same month last year. On month-on-month basis, INDU posted increase of 15% from 4,065 units in Aug 2014. On quarterly basis, sales increased by 17% during 1QFY15.

Major increase is witnessed in INDU’s flagship ‘Corolla’ which sold 4,358 units in Sep 2014 from 3,515 units in previous month while Hilux sales witnessed a decline of 42% to 277 units compared to 475 units in Aug 2014.




RCCI felicitates Bukhari on electing President of RTBA

RAWALPINDI (APP): Renowned advocate and Vice Chairman RCCI Standing Committee on sales tax and federal excise duty Syed Tauqeer Bukhari has been elected as President Rawalpindi Tax Bar Association for the term of two years. According to a press release issued here President Rawalpindi Chamber of Commerce and Industry (RCCI) Syed Asad Mashadi felicitated Tauqeer Bukhari and said that Mr. Tauqeer’s success will have positive impact on the business community of twin cities. He ensured his fullest cooperation to Tauqeer Bukhari and hoped that problems faced by the business community will be resolved on priority basis.

   It is worth mentioning that Rawalpindi-Islamabad Tax Bar Association represents Charted Accountants, Tax practitioners and Advocates of Rawalpindi Division and Federal Capital and body elects office bearers for the term of two years. In recent elections Tauqeer Bukhari took 101 votes while his opponent Agha Mujeeb Ahmed took just three votes. Syed Tauqeer Bukhari has been practicing as senior lawyer at High Courts since 16 years, a notified

member of Federal Board of Revenue’s Alternate Dispute Resolution  Committee (ADRC) and director of Arbitration Forum Pakistan.


SRSP constructs 75KV power station at Sheikhanda

CHITRAL (APP): Sarhad Rural Support Programme (SRSP) constructed 75KV power station at Sheikhanda village of the Ramboor area of Kalash valley, district Chitral.    Addressing the inaugural ceremony as chief guest CEO SRSP, Prince Masood-ul-Mulk said that the power station has been established with the financial assistance of the European Union (EU) funded Programme for Economic Advancement and Community Empowerment. He said that the facility would help resolving the issue with power shortage and low voltage in the area. The scheme would cost an amount of Rs.15 million and benefit 260 families, he added.




1st post-Haj flight for Multan

lahore (OUR STAFF REPORTER): PIA’s first post- Haj flight for Multan PK 3302 departed from Jeddah carrying 327 Hajis. The Hajis were seen off by Director Airport Services and Chief Hajj Coordinator PIA, Aijaz Mazhar and other PIA officials at Jeddah Hajj Terminal, a press release of PIA said here on Sunday.  It said that PIA’s post- Hajj flights are operating as per schedule.  The airline will operate 12 special Hajj flights to carry around 4,000 Hujjaj to Multan. The airline has so far operated 58 post- Hajj flights bringing over 28,000 Hajis back home. The flights from Jeddah to Pakistan are departing according to the expected time of departure for their respective destinations.

The post-Hajj operation of PIA which started from October 08 will end on November 07 operating 109 Hajj flights and regular scheduled flights bringing back more than 56,000 Hujjaj to Pakistan.