Pakistan Textile: 2QFY25 Previews: Profitability to drop by 22% YoY - By Insight Research
Feb 18 2025
Insight Securities
- We expect ISL textile universe profitability to decrease by ~22% YoY to clock in at PKR3.5bn vs. PKR4.5bn in SPLY, primarily due to compressed gross margins and higher operating cost. Revenue is likely to increase by ~20% YoY, mainly attributable to higher volumetric sales. Gross margins are expected to decrease by ~330bps YoY, mainly due to rising energy cost and dampened export prices. Whereas, finance cost is likely to decrease by ~21% YoY, due to decline in interest rates. On company specific, we expect ILP/GATM/NML/ NCL to post EPS of PKR0.84/0.65/4.52/1.28 in 2QFY25, respectively.
- To highlight, in 7MFY25, Pakistan’s textile exports clocked in at US$10.77bn vs. US$9.74bn in SPLY, up by ~11% YoY.
- We expect ILP to post consolidated PAT of PKR1.18bn (EPS: PKR0.84) in 2QFY25 vs. PKR3.81bn (EPS: PKR2.72) in SPLY, down by ~69% YoY. The decline is mainly attributable to higher energy cost, imposition of normal tax regime and loss arising from recently commissioned apparel segment. Company’s revenue is expected to clock in at PKR43.3bn, up by ~22% YoY, mainly attributable to higher volumetric sales. ILP is expected to incur a finance cost of PKR2.4bn, down by ~7% YoY, mainly due to lower interest rates. Moreover, ETR for the quarter is likely to clock in at 39% vs. 12% in SPLY. GATM: 2QFY25 EPS lik
D.G Khan Cement Company Limited (DGKC): Result Preview 3QFY25 - By AHCML Research
Apr 25 2025
Al Habib Capital Markets
- D.G Khan Cement company limited is anticipated to report a PAT of PKR 1,762 million (EPS: PKR 4.02) for 3QFY25, reflecting an increase of 49.26% YoY.
- Sales revenue for the quarter is expected to reach PKR 19,147 million, up 34.21% YoY, supported by higher local and export dispatches.
- Gross margins are estimated at 20.10%, down 5.4ppt YoY.
GlaxoSmithKline Pakistan (Glaxo):Result Review: GLAXO 1QCY25 EPS Rs6.7 - By Sherman Research
Apr 25 2025
Sherman Securities
- GlaxoSmithKline Pakistan (Glaxo) announced 1QCY25 EPS of Rs6.7 versus EPS of 1.8 during the same period last year, up by massive 3.7xYoY. The jump in earning is primarily attributable to increase in gross margins to 34% (up 19ppts).
- During 1QCY25, the company’s topline remained flat at 15.6bn compared to same period last year mainly due decline in volume.
- Thanks to hike in prices and decline in raw material prices, Glaxo’s gross margin sharply increased to 34% during 1QCY25 versus 15% during same period last year.
Mari Energies Limited (MARI): Earnings Beat by Lower Than Expected ETR - By IIS Research
Apr 25 2025
Ismail Iqbal Securities
- Mari Energies Limited (MARI PA) has announced its 3QFY25 profit of PKR 15.9bn (PKR 13.25/share), up by 13% YoY & 42% on QoQ basis. The result is above our expectations mainly due to lower than anticipated ETR.
- Revenue fell 5% YoY (up by 10% QoQ) in 3Q, driven by lower oil prices. Royalty rose 2x YoY due to a 15% hike in MARI field charges amid lease extension from Nov’24.
- Operating expenses declined by 27% YoY and 45% QoQ, mainly because of absence of amortization of dry well costs. Exploration expenses also decreased by 81% YoY and 22% on QoQ basis, mainly because of no dry well during the qtr.
Mari Energies Limited (MARI): 3QFY25 EPS clocked in at PKR13.2 – Above expectatio - By Insight Research
Apr 25 2025
Insight Securities
- Mari Energies (MARI PA) has announced its 3QFY25 result today, wherein company has posted PAT of PKR15.9bn (EPS: PKR13.2) vs. PKR14.1bn (EPS: PKR11.8). The result is above our expectation mainly due to higher than expected topline coupled with lower than expected ETR.
- In 3QFY25, revenue decreased by 5% YoY mainly due to lower gas production. However, same in up by 10% QoQ possibly attributable to increase in production.
- Royalty expense increased by 100%/45% YoY/QoQ due to an additional 15% royalty payment on the wellhead value, following the extension of the MARI D&P lease.
Fatima Fertilizer Company Limited (FATIMA): Earnings Dip 39% QoQ on Lower Offtake - By IIS Research
Apr 25 2025
Ismail Iqbal Securities
- FATIMA announced its 1QCY25 results today. On a consolidated basis, EPS came in at PKR 3.99 (our expectations of PKR 4.21). with Sales declining by 21% YoY and 40% QoQ to PKR 51.96 billion, primarily due to lower Offtakes. Despite this, gross margins remained better at 40% (vs. 42% YoY and 32% QoQ) indicating cost efficiencies as production levels remained largely consistent.
- Inventory levels remain high, with FATIMA holding 233KT of urea, which accounts for 28% of the total industry stock, as well as 258KT of CAN, a product it produces exclusively within the industry. The overall industry continues to struggle with offtake, primarily due to reduced farm incomes following the shift from a crop support price regime to a free market system, while input costs have remained unchanged.
- Finance costs rose sharply by 131% YoY, due to higher borrowings. The effective tax rate for the quarter stood at 39%, compared to 49% in the SPLY and 37% in the previous quarter.
Pakistan Economy: CPI expected at 0.8% in April'25 - By IIS Research
Apr 25 2025
Ismail Iqbal Securities
- Inflation for Apr’25 is projected at 0.8%, sharply down from 17.3% in SPLY, indicating significant easing in price pressures. On a MoM basis, CPI is expected to decline by 0.29%, reversing the 0.89% increase in Mar’25. This drop is mainly driven by lower prices of Wheat, Eggs, Fresh fruits, Onions, and Tomatoes, leading to a 1.5% MoM decline in overall food inflation. The Housing index is also expected to fall by 0.8% MoM, despite rent adjustments, due to a reduction in the electricity index from negative fuel price adjustments in April.
- Core inflation is projected to ease to 8.4% from 15.6% in SPLY, with urban core at 7.6% and rural core at 9.5%. The sharp decline is due to the high base effect and improved price stability. However, rural core inflation remains relatively elevated due to persistent challenges like supply chain inefficiencies and higher transportation costs in rural areas.
- In its last meeting, the SBP maintained the policy rate at 12%, opting to pause after a cumulative 1,000 bps rate cut to evaluate its impact on inflation and overall macroeconomic stability. The MPC flagged persistent risks from elevated core inflation and possible upticks in food and energy prices. Meanwhile, the government raised the PDL by another PKR 8/liter, pushing the total to PKR 78/liter. The IMF has also stressed the need for continued monetary discipline, noting that the full effects of recent rate cuts are yet to be seen. Additionally, with the federal budget due in June, policymakers are likely to monitor its potential inflationary implications closely. Given these factors, we expect a status quo in the upcoming MPC.
Habib Bank Limited (HBL): 1QCY25 EPS arrives at PKR 11.3; PAT up 11%YoY/ up 14%QoQ - By Taurus Research
Apr 25 2025
Taurus Securities
- 1QCY25 EPS: PKR 11.3. 1QCY25 PAT up 11%YoY – in line with expectations. In addition, HBL has also announced an interim DPS of PKR 4.50. Profitability has improved mainly due to uptick in the net-interest margin for the Bank.
- Net Interest Income (NII): Up 14%YoY/QoQ, wherein the decline in interest income was more than offset by lower interest expenses which can be attributed to lower cost of funds as a result of lower leverage and benefit of the new MDR regime.
- Non-Markup Income (NMI): Up 7%YoY. However, declined 40% on a sequential basis primarily due to a 90% decline in other income which included a substantial gain on closure/sale of branches last quarter amounting to PKR 14.3Bn.
Pakistan Textile: 3QFY25E Result Preview: Profitability to dip as margin pressure outweighs finance cost relief - By AKD Research
Apr 25 2025
AKD Securities
- AKD Textile Universe’s profitability is projected to decline by 12%YoY in 3QFY25E, mainly due to lower gross margins and higher taxation.
- Company-wise, NML and NCL earnings are expected to improve on an annual basis with EPS of PkR4.58/2.14 in 3QFY25E, respectively. Conversely, ILP’s profitability is expected to decline by 66%YoY to PkR1.13/sh, mainly due to gross margin contraction.
- We maintain our ‘BUY’ stance on ILP, NML and NCL with Dec’25 target price of PkR104/sh, PkR187/sh and PkR64/sh, respectively.
Fatima Fertilizer Company Limited (FATIMA): 1QCY25 EPS clocked in at PKR4.0 – Above expectation - By Insight Research
Apr 25 2025
Insight Securities
- FATIMA has announced its 1QCY25 result, wherein company has posted consolidated PAT of PKR8.4bn (EPS: PKR3.99) vs. PAT of PKR13.6bn (EPS: PKR6.49) in preceding quarter. The result is above our expectation mainly due to higher than expected gross margins.
- Revenue for the quarter clocked in at PKR52.0bn vs. PKR66.0bn in SPLY, down by 21%/40% YoY/QoQ, mainly attributable to lower offtakes.
- Gross margins decreased by ~200bps YoY, to clock in at ~40%, attributable to lower offtakes. While on QoQ basis, margins increased by ~8ppts.
Ibrahim Fibres Limited (IBFL): CY24 Corporate Briefing Takeaways - By Taurus Research
Apr 25 2025
Taurus Securities
- Ibrahim Fibres Limited was incorporated in Pakistan as a Public limited company. The Company’s primary business is to manufacture and sell polyester staple fibre and yarn.
- In CY24, revenue clocked in at PKR 121Bn compared to PKR 120Bn, up 1% over the SPLY. Gross margins increased 1ppts arriving at 8% compared to 7% in the SPLY. Other income declined by ~57%YoY arriving at PKR 36Mn compared to PKR 83Mn. Hence, PAT arrived at PKR 2.3Bn compared to PKR 303Mn, up 6.8x in CY24. Consequently, earnings arrived PKR 7.6/sh compared to PKR 0.98/sh.
- In CY24, the Company earned PKR 77.7Bn from PSF, which represents 64% of total revenue, while yarn generated PKR 42.8Bn, contributing 36% to the overall revenue.
Mari Energies Limited (MARI): 3QFY25 EPS clocked in at PKR13.2 – Above expectatio - By Insight Research
Apr 25 2025
Insight Securities
- Mari Energies (MARI PA) has announced its 3QFY25 result today, wherein company has posted PAT of PKR15.9bn (EPS: PKR13.2) vs. PKR14.1bn (EPS: PKR11.8). The result is above our expectation mainly due to higher than expected topline coupled with lower than expected ETR.
- In 3QFY25, revenue decreased by 5% YoY mainly due to lower gas production. However, same in up by 10% QoQ possibly attributable to increase in production.
- Royalty expense increased by 100%/45% YoY/QoQ due to an additional 15% royalty payment on the wellhead value, following the extension of the MARI D&P lease.
Fatima Fertilizer Company Limited (FATIMA): 1QCY25 EPS clocked in at PKR4.0 – Above expectation - By Insight Research
Apr 25 2025
Insight Securities
- FATIMA has announced its 1QCY25 result, wherein company has posted consolidated PAT of PKR8.4bn (EPS: PKR3.99) vs. PAT of PKR13.6bn (EPS: PKR6.49) in preceding quarter. The result is above our expectation mainly due to higher than expected gross margins.
- Revenue for the quarter clocked in at PKR52.0bn vs. PKR66.0bn in SPLY, down by 21%/40% YoY/QoQ, mainly attributable to lower offtakes.
- Gross margins decreased by ~200bps YoY, to clock in at ~40%, attributable to lower offtakes. While on QoQ basis, margins increased by ~8ppts.
Systems Limited (SYS): 1QCY25 EPS to clock in at PKR8.08 - By Insight Research
Apr 25 2025
Insight Securities
- Systems Limited is expected to post PAT of ~PKR2.4bn (EPS: PKR8.08) in 1QCY25 as compared to ~PKR1.6bn (EPS: PKR5.29) in SPLY, up by 50%/16% YoY/QoQ.
- Revenue is expected to increase by ~32%/5% YoY/QoQ to clock in at PKR20.1bn, attributable to growth momentum in Middle East region. In 1QCY25 company’s dollarized revenue is expected to grow by ~32%/4% YoY/QoQ to clock in at US$72mn.
- Gross margins are anticipated to clock in at ~25.2% during 1QCY25 vs. ~23.1% in SPLY, up by ~2.1ppts YoY mainly due to improvement in Middle East region. Similarly on QoQ basis, margins are expected to improve by ~0.8ppts, supported by the absence of higher one-off trading business.
Al-Ghazi Tractors Limited (AGTL): 1QCY25 EPS clocked in at PKR1.01 – Below expectation - By Insight Research
Apr 25 2025
Insight Securities
- AGTL has announced its 1QCY25 result, wherein company has posted PAT of PKR59mn (EPS: PKR1.01) vs. PAT of PKR855mn (EPS: PKR14.7) in SPLY, down by ~93% YoY. The result is significantly below our expectation mainly due to lower than estimated gross margins and higher than estimated operating expenses.
- During 1QCY25, revenue witnessed a decline of 62%/66% YoY/QoQ to clock in at PKR3.6bn, primarily due to lower volumetric sales. To highlight, volumetric sales decrease by ~63%/69% YoY/QoQ.
- Gross margins decreased by ~70bps/390bps YoY/QoQ to clock in at ~21.5% in 1QCY25, possibly due to lower volumes.
Maple Leaf Cement Limited (MLCF): 3QFY25 EPS clocked in at PKR2.67 – Above expectation - By Insight Research
Apr 23 2025
Insight Securities
- Maple Leaf cement has announced its 3QFY25 result, wherein company has posted PAT of PKR2.8bn (EPS: PKR2.7) vs. PAT of PKR1.5bn (EPS: PKR1.4) in SPLY. The result is above our expectation due to lower effective tax rate.
- In 3QFY25, revenue increased by 4% YoY mainly due to higher volumetric sales and better retention price. While on QoQ, same is down by 13% amid lower offtakes and retention price.
- Gross margins of the company clocked in at 35%, up by ~5.5ppts YoY, due to decline in coal prices and reliance on cheaper fuel mix. While on sequential basis, same is down by ~4.7ppts due to lower retention prices.
Meezan Bank Limited (MEBL): 1QCY25 EPS clocked in at PKR12.3 – Above expectation - By Insight Research
Apr 21 2025
Insight Securities
- MEBL has announced its 1QCY25 result, wherein it has posted unconsolidated PAT of PKR22.0bn (EPS: PKR12.3) vs. PAT of PKR24.9bn (EPS: PKR13.9) in SPLY. The result came slightly above our expectations, mainly due to healthy volumetric growth QoQ.
- Profit earned fell by ~10%/8% YoY/QoQ, mainly driven by lower yields on assets. To highlight, bank recorded deposit growth of ~11% QoQ in 1QCY25.
- Other income recorded QoQ decline of ~23%, amid 8% QoQ decline in fee income and absence of capital gains. On YoY basis, other income inched up by ~29% due to 10% increase in fee income and healthy jump in FX income.
Sazgar Engineering (SAZEW): 3QFY25 EPS clocked in at PKR103.06 – Above expectation - By Insight Research
Apr 21 2025
Insight Securities
- SAZEW has announced its 3QFY25 result, wherein company has posted PAT of PKR6.2bn (EPS: PKR103.06) vs. PAT of PKR3.0bn (EPS: PKR50.19) in SPLY. The result is above our expectation mainly due to higher than estimated topline and gross margins.
- During 3QFY25, revenue witnessed an increase of ~83%/100% YoY/QoQ to clock in at PKR36.7bn, primarily due to higher volumetric sales.
- Gross margins increased by ~360bps/420bps YoY/QoQ to clock in at ~32.6% in 3QFY25, possibly attributable to higher sales volumes.
Lotte Chemical Pakistan Limited (LOTCHEM): 1QCY25 EPS clocked in at PKR0.44 – Below expectation - By Insight Research
Apr 17 2025
Insight Securities
- LOTCHEM has announced its 1QCY25 result, wherein company has posted PAT of PKR0.7bn (EPS: PKR0.44) vs. PAT of PKR0.9bn (EPS: PKR0.59) in SPLY. The result is below our expectation due to lower than estimated revenue.
- In 1QCY25, revenue decreased by 33% YoY, due to lower volumetric sales. While on QoQ basis, same is up by 6% possibly due to higher PTA prices and volumetric sales.
- Gross margins of the company clocked in at 6.2%, up by 100bps/540bps YoY/QoQ, due to improved core delta.
Lotte Chemical Pakistan Limited (LOTCHEM): 1QCY25 Preview: Profitability to stay muted - By Insight Research
Apr 16 2025
Insight Securities
- LOTCHEM is expected to post a PAT of PKR806mn (EPS: PKR0.50) in 1QCY25 vs. loss of PKR19mn (LPS: PKR0.01) in preceding quarter amid better core delta. While on YoY basis profitability inch up by ~2%. To note, International PTA prices plunged by ~13% YoY to clock in at ~US$682/ton. Similarly, PX prices witnessed a decrease of ~16% YoY to clock in at US$868/ ton, resulting in an increase of ~9% in PTA-PX spread. Company’s topline is expected to decrease by 25% YoY to clock in at PKR24.3bn in 1QCY25, amid lower volumetric sales. Whereas, same is expected to increase by ~20% QoQ due to higher volumetric sales. Gross margins of the company are estimated to clock in at 6.5% in 1QCY25, witnessing an increase of ~130bps/5.7ppts YoY/QoQ on account of improved core delta. Selling and distribution expense is expected to increase by 39%/20%, YoY/QoQ.
- EPCL is expected to post a consolidated LAT of PKR264mn (LPS: PKR0.29) in 1QCY25 vs. LAT of PKR900mn (LPS: PKR0.99) in SPLY. Company’s topline is expected to increase by 12% YoY to clock in at PKR18.5bn in 1QCY25, amid higher volumetric sales. While, same is expected to decline by ~13% QoQ primarily due to lower PVC prices. Gross margins are estimated to clock in at 10.2% in 1QCY25 witnessing an increase of ~380bps YoY, attributable to higher volumetric sales. While on QoQ basis, same is expected to decline by ~390bps amid lower core delta and higher gas prices. To note, International PVC prices decline by ~4%/5% YoY/QoQ to clock in at ~US$756/ton. Similarly, PVCEthylene margins witnessed a decline of ~5%/10% YoY/QoQ. Selling and distribution expense is expected to decrease by 32% YoY, whereas same is expected to go down by ~8% QoQ. Financial charges are anticipated to decrease by 22%/27% YoY/ QoQ to clock in at PKR1.3bn, primarily due to decline in debt level and interest rates.
Pakistan Cement: 3QFY25 Previews: Profitability to increase by 36% YoY - By Insight Research
Apr 16 2025
Insight Securities
- We expect ISL cement universe to post a PAT of ~PKR10.6bn in 3QFY25 increasing by 36% YoY amid higher offtakes and lower finance cost. While on QoQ, profitability is expected to decline by 21%, mainly due to decline in offtakes and lower retention price for north based players. Revenue is anticipated to increase by 7% YoY due to higher volumetric sales and retention price. While on QoQ, same is expected to decline by 16% due to lower retention price and volumetric sales. Gross margins are expected to clock in at 30% in 3QFY25 vs. 28% in 3QFY24 and 34% in 2QFY25. Finance cost is expected to decline by 46% YoY on account of decline in interest rates and debt levels. To note, in previous quarter cement companies took advantage of cheaper loans amid ADR pressure on banking sector. However, we have assumed normalization of short term borrowing this quarter resulting in decline in other income (↓20%) and finance cost (↓43%). On company specific basis, we expect LUCK/DGKC/MLCF/FCCL/PIOC/ACPL to post EPS of PKR22.1/3.6/2.2/1.1/ 5.8 /4.0 in 3QFY25, respectively.
- During the quarter, local cement dispatches increased by 2% YoY, while on QoQ same is down by 6% due to winter and Ramadan effect. Similarly, cement exports surged by 19% YoY to clock in at 1.7mn tons. To note, capacity utilization of the sector clocked in at 52% in 3QFY25 vs 50% in SPLY.