LAHORE (PPI) - Former Chairman of Pakistan Poultry Association (PPA) and former Senior Vice President of LCCI Abdul Basit has demanded of the government form a high-powered commission to identify the genuine reasons behind acute power shortage. In a press statement issued here Tuesday, he said that more than 15 hours power outages in the urban and 20 hours load shedding in the rural areas due to over 6000 MW shortfall in the demand and supply, has not only ruined the economy but also pushing the industrial sector towards the bankruptcy. He said that such a huge load shedding is giving impression of some conspiracy as the electricity shortfall is 36 percent of the entire demand while the existing load shedding is equal to 70percent of demand that is not logical. He said it seems that some people at the helm of affairs are utilizing their energies to create panic in the country. He said that according to an estimate, more than 68000 industrial units are situated in Punjab only from which 14,820 are textile units, 6,778 are ginning units, 7355 are agriculture raw material processing units and 39,033 are different kind of large and small scale industrial units. He said that all of these units use electricity and gas as fuel. He said that most of these units have closed down their operations because of horrifying loadshedding while the remaining are on the rim of entire collapse. He said that millions industrial workers have lost their employment, their families were compelled for starvation but no concrete measures yet to be seen by the government. He said that the destruction was not limited to the Punjab level but national economy was feeling the heat as the most of export-oriented industries were situated at Punjab and most revenues were also being paid by the Punjab businessmen. Now Punjab industry is being closed and businessmen are on the edge of default. He said that new investment is very important for the economy of any country in the world but in these circumstances when a local investor was not ready to invest a single rupee, how foreign investor could be convinced? Abdul Basit said that lack of supply of furnace oil to the oil-operated power generating units was one of the biggest reasons of electricity crisis. He urged the government to ensure sufficient oil supply to the oil-operated power generating units so that they could run on their full capacity. Former Chairman of PPA & former SVP of LCCI said that Indian water bomb is playing a key role to deepen the energy crisis in Pakistan. He said that according to Indus Water Treaty, India cannot use the water of Jhelum, Chenab and Sindh but he had constructed more than 70 dams while violating the IWT and Pakistani government is playing the role of silent spectator. He urged the government to start construction of Kalabagh Dam and Basha Dam on war footing to generate cheap and environment friendly electricity. He said that there is not reason to oppose Kalabagh Dam as in 1960 World Bank had recommended the construction of KBD. Saarc CCI supports MFN status to India LAHORE (PPI) - Welcoming the upcoming Commerce Secretary level talking between Pakistan and India, the SAARC Chambers of Commerce and Industry (SCCI) has supported demand to accord most favoured nation (MFN) status to India to widen economic and regional co-operation and accelerate development. The two countries should remove trade barriers, abandon tensions and support each other following the pattern of European Union so that both can excel, said Vice President SCCI and veteran trade leader Iftikhar Ali Malik while speaking at a meeting of World Punjabi Forum (WPF) at New Delhi. He said that we are here to promote peace, condemn terrorism and give message of love and brotherhood on behalf of Pakistani business community. Iftikhar Ali Malik, who is also president of WPF, Pakistan Chapter said that the two countries should eliminate visa restrictions and establish visa facilitation desks at all embassies and consulates. Lack of product sharing and high cost of doing bilateral business has been inflicting great losses on the people of Pakistan and India which must end, he demanded. The trade leader said that we should restore communication links, enhance business activities and promote tranquillity to end mistrust which is keeping millions below the poverty line on both sides of the divide. He said that Indian electricity, diesel, Internet data and expertise are most welcome provided continuation in supply and concrete steps to balance the mutual trade are guaranteed by New Delhi. SVP Saarc CCI Vikranjit Singh Sahney who is also President of Indian Chapter of WPF said that we want that both countries should live in peace and receive equal trade advantages. We are tied in several affinities therefore we must promote love, affection and harmony as our past and future is tied together, he underlined. Speaking on the occasion Chairman Media Committee FPCCI Malik Sohail Hussain said that he especially travelled through 'Dosti Bus to participate in the meeting. It was a great journey during which I felt honoured, he said adding that he will never forget respect and hospitality of Indian brethren. He demanded other moves like Bus Service to bring people of two countries together. Malik Sohail called upon automakers to support Pakistani automotive industry which is in distress over supply chain disruption from Japan. Others present on the occasion included Deputy General Secretary Federation of Indian Chamber of Commerce and Industry Ambika Sharma, Chairman NRC Industries Rabindar Singh, Sarabjit S. Chadda, Surjit Singh, Chairman FPCCI Capital Office Hameed Akhtar Chadda, Indian industrialist B.S. Aanand, GS WPF Ali Badr and Arshad Alam. They said that we have no future unless we shun petty differences. LOTPTA books profit of Rs2.5b LAHORE (PPI) - Lotte Pakistan PTA Limited (LOTPTA) announced its 1Q2011 result on Monday. The company booked profits of Rs2.5b (EPS: Rs1.64) during 1Q2011, as against profits of Rs921mn (EPS: Rs0.61) in the same period last year. Strong PTA-Px margins (crossed US$400 per ton during the quarter) were the primary reason behind growth in the bottom line. Net Sales of the company recorded an increase of 71 percentYoY to stand at Rs16.0 billion, where as cost of sales were up 52 percentYoY to Rs12.1 billion. As a result, gross profit settled at Rs3.9 billion (gross margin of 24 percent). Finance income improved to Rs272mn versus Rs257mn in 1Q2010. Effective tax rate stood at 32.7 percent which further augmented the bottom-line. MCB posts earnings of Rs5b LAHORE (PPI) - MCB Bank (MCB) announced its 1Q2011 result on Monday, posting unconsolidated earnings of Rs5.0 billion (diluted EPS Rs6.01) as against profits of Rs4.1 billion (diluted EPS Rs4.95) up 21 percentYoY. The bank also announced a cash dividend of Rs3/share. The primary reason for the 21 percent earnings growth was a 25 percentYoY rise in Net Interest Income (NII) to Rs18.0 billion following the uptick in KIBOR (6M KIBOR up 140bps YoY). Non interest income too, jumped by 43 percentYoY to Rs2.0 billion, likely to be driven by higher fee income. Total provisions on the other hand rose by 18 percentYoY to Rs1.2 billion, while operating expenditures jumped by 36 percentYoY to Rs3.9 billion (lower PF reversals likely). MCB bank announced 1Q2011 EPS of Rs6.0 as compared to EPS of Rs4.95 last year, up 21 percentYoY. Handsome earnings growth mainly stems from sharp improvement in net interest income (NII), up 25 percent to Rs10.9 billion. Thanks to better return on assets amid higher interest rates. Besides higher interest income (up 22 percent), 43 percent rise in non interest income also supported bottom-line. And that is why income to expense ratio (excluding provisions) has improved to 3.6x compared to 3.3x last year. However, operating expenses remained higher by 35 percent to Rs3.9 billion while total provisioning increased by 18 percent to Rs1.2 billion. Indus Motor books profit of Rs1.6b LAHORE (PPI) - Indus Motor announced its 9MFY11 result on Monday. The company booked profits of Rs1.6 billion (EPS: Rs20.39) during 9MFY11 as against Rs2.2 billion (EPS: Rs27.68) in the corresponding period last year, down 26 percentYoY. Though net sales of the company increased to Rs45.3 billion (up 13 percentYoY), depreciation of Pak Rupee against JPY and US$ dragged down gross profits by 16 percentYoY. Gross margins stood at 5.63 percent vs. 7.53 percent previously. Moreover, other income witnessed a decline of 16 percentYoY. Indus Motors (INDU) announced 9MFY11 of EPS Rs20.39 as compared to EPS of Rs27.66 last year, down 26 percentYoY. Despite improved topline by 13 percent YoY, this decline in earnings is primarily due to continuous upward pressure on cost along with lower other income. Indus gross margins declined by 190bps YoY to 5.6 percent compared to 7.5 percent in 9MFY10. This decline was seen primarily on account of increasing Japanese Yen parity against Pak Rupee.Other operating income declined by 16 percent to Rs1.1 billion compared to Rs1.32 billion in 9MFY10 due to lower cash available emanated from lower unit sales. UBL likely to report 25pc raise in earnings LAHORE (PPI) - United Bank Limited (UBL) is likely to report an increase of 25 percent in its 1Q2011 earnings, with profits reaching Rs3.5 billion (EPS Rs2.85). The YoY rise will mainly come from, 1) 17 percent increase in Net Interest Income (NII) on the back of higher earnings yield (KIBOR up 140bps YoY) along with lower cost of funds, 2) 28 percent lower provisioning charge on bad loans and 3) 15 percent jump in fee income to Rs1.7 billion, emanating from increasing trade and remittances business. On a QoQ basis, earnings are likely to grow by 13 percent, with the rise driven by higher interest income .We currently maintain our 'Buy call on the scrip, with a target price of Rs73. It currently trades at 2011F PBV and PE of 1.0x and 6.5x, respectively.