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KARACHI, Sept 27: The KSE-100 index kept up its crawl on Thursday, to close well above the level of 13,300. In the politically turbulent conditions, the rise could be suggestive of two possibilities: either some people know what others don’t or simply that more and more investors are putting their money on the table in the belief that things are not that dicey. For the bulls, that must require a great leap of faith.
Traders remained glued to TV sets, all morning, as they watched ‘caravans’ of presidential hopefuls parade to the Office of the Chief Election Commissioner. But it was business as usual for companies.
Scheduled Board meetings were held and results declared.
Sixteen companies announced financial figures for the period ended June 30, 2006 on Thursday.
Shezan International; Kohat Cement; Askari Leasing; Allied Rental Modaraba; First Mehran Modaraba; Al-Noor Modaraba; Moonlite (Pakistan); Atlas Income Fund; KESC; Ecopak Ltd; Japan Power Generation; Nimir Resins; Mari Gas Co; Khalid Siraj Textile; Asset Investment Bank and Dreamworld Ltd. Figures of some of those available were as follows:
KESC: Peep as far as one can, it is difficult to see light at the end of the tunnel.
For the sole supplier of power to the haggard people of the city, Karachi Electric Supply Corporation (KESC) is a bad dream.
Along the years, the government has poured doleful of money in KESC for it to jump out of losses. That never happened, nor has privatisation helped. For the year ended June 30, 2007, the Corporation posted staggering loss of Rs12,176 million.
It is larger than the loss of Rs7,192 million made by the corporation in 1996. But an analysis of the figures shows that in the previous year, KESC had enjoyed the benefit of Rs7,576 million, represented as “recoveries / recoverable from the Government under the terms of implementation Agreement”.
That could provide the Corporation a reason to argue that loss before “government grant” was lesser at Rs11,957 million, compared to Rs14,630 million the previous year.
Is that something to cheer? Why not ask someone in Ranchore Line (after dark).
SHEZAN INTERNATIONAL: The processor of fruits and vegetables announced net profit amounting to Rs140.7 million for the year ended June 30, 2007, translating into earnings per share (eps) of Rs28.13.
Directors recommended cash dividend at Rs10 per share, tied to bonus shares at 20 per cent (20 for 100).
The company reported sales growth at Rs2,175 million for the year, compared to Rs1,798 million the previous year. The company enjoys a large captive market as it has been the sole supplier to the country’s armed forces.
JAPAN POWER GENERATION: The Independent Power Producer (IPP) posted after-tax loss of Rs217 million for the financial year ended June 30, 2007, translating into loss per share at Rs1.57.
The deficit last year was Rs269 million and loss per share Rs2.02. The company naturally did not declare a dividend.
When the government had many years ago opened power production for the IPPs, parties were falling over each other in trying to be the first.
The consideration must have been profit or what else? At the annual general meeting (AGM) to be held on Oct 20, the Board would possibly tell shareholders what turned those plans sour.
ASSET INVESTMENT BANK: In the 14 years since its listing on the Karachi Stock Exchange in 1993, no one remembers a golden year when the Bank might have made a profit.
Investors have been trapped, while the Bank sits comfortably on the ‘defaulters counter’ on two charges under the KSE listing regulation 32(1).
For the year ended June 30, 2007, the Bank posted after-tax loss of Rs34.0 million, which turned into per share loss at Rs3.40.
MOONLITE (PAK): Generally known for the production of blankets, the company has not been able to do well. It is for that reason that results for the latest year ended June 30, 2007, came as a pleasant surprise with the company posting huge profit of Rs212 million. That replaced the loss of Rs20.1 million suffered the previous year. But before the shareholders begin to rub their hands in glee, it is necessary to study the figures in detail. The profit for the latest year comes entirely from a colossal sum of Rs268 million recorded as “gain on disposal of property.”
The company also recorded “loss on sale of obsolete stock” amounting to Rs41 million.
It was not mentioned in the announcement made on Thursday, but could it be that the company is selling property, so as to quietly close down the business?
The KSE should investigate in order to protect the interests of small shareholders in the company.
