PakStox Outlook

APL (Q2-Dec 2024) delivered mixed financial results for the quarter. The gross margin remained steady at 3%, consistent with the average of the last four quarters. Revenue declined by 5%, while gross profit saw a marginal increase of 1%. PBT decreased by 6%, but PAT remained flat with a 0% change.  APL had a finance income of Rs 1.74 billion for the quarter. The tax rate for the quarter was 35%, lower than the average of 39% over the previous four quarters.

MARI (Q2-Dec 2024) reported a decline in financial performance for the quarter. Revenue decreased by 8% compared to the average of the last four quarters. PBT and PAT saw more significant declines, dropping by 44% and 42%, respectively. This was primarily due to higher operating and administrative expenses, which more than doubled compared to the same quarter last year. The tax rate for the quarter stood at 25%, slightly lower than the average of 28% over the previous four quarters. In Q2-Dec 2024, MARI's operating profit was Rs. 12.58 billion, reflecting a sharp decline of over 57% compared to Q2-Dec 2023. In this quarter MARI recorded a finance income of Rs. 2.3 billion, no finance expenses. See report for details. See Key Financials

The Monetary Policy Committee (MPC) reduced the policy rate by 100 basis points to 12%, citing declining inflation (4.1% year-on-year in December 2024) and improving economic activity, though core inflation remains elevated. Real GDP growth for the first quarter of the financial year 2025 (Q1-FY25) slowed to 0.9% due to weaker agricultural performance but is projected to recover to 2.5–3.5% for FY25. Policy rates have seen a drop of 10% since June last year. The policy rate remained remained perched  at 22% for around one year until it started dropping in June 2024. The current account surplus reached $1.2 billion in the first half of FY25 (H1-FY25), supported by strong remittances and export growth, with foreign exchange reserves expected to exceed $13 billion by June 2025. While fiscal revenues grew by 26% during H1-FY25, they remain below target, necessitating accelerated tax collection. Inflation is projected to average 5.5–7.5% for FY25, with near-term risks from global commod...

For the years ending 2024 and 2023, HTL incurred operating losses. Income during these periods primarily consisted of "other income," which was substantially comprised of dividend income from its 100% owned subsidiary, Hi-Tech Blending. Furthermore, in both 2024 and 2023, HTL benefited from a tax write-back. This write-back boosted profit after tax (PAT) in 2024 and reduced the net loss in 2023. The tax write-back resulted from the company and its subsidiary, Hi-Tech Blending (Private) Limited, being taxed as a group. Lat cash dividend was paid in Year 2022.  With over 75% holding with sponsors what is the point of listing for PSX participants.

OGDC remains under state control. The Government of Pakistan holds around 75% of its shares. For the latest quarter ending Sep2024, OGDC owns a 20% stake in Mari Petroleum (PSX:MARI). It is holding 42% of Pakistan's oil reserves and 36% of its gas reserves. OGDC posted a profit of Rs. 9.5 per share and paid a cash dividend of Rs. 3 per share. In the last four quarters, OGDC earned a net income of Rs. 46.7 per share. While in the last 4 quarters, total cash distribution was Rs. 11.5 per share. PAT for the trailing twelve months decreased by 4% compared to the prior quarter. Over the past 3 months, OGDC has gained 33% compared to a gain of 34% of the KSE100 Index. Over the past 1 year, OGDC has gained 79% compared to a gain of 81% of the KSE100 Index. OGDC has made no change in its capital in the last one year. Exposure in PSX Indices: KSE100: High KSE30: High KMI30: High OGDC is trading at a market price of Rs. 222.5.Its Price Earning Ratio is 5. Its dividend yield is 5.2%. The aver...

Oil & Gas is the largest sector in the Pakistan Stock Exchange in terms of market capitalization. This sector is also heavily exposed to PSX Indices. The total market capitalization of the sector is 21% of the PSX market capitalization. See the Detailed Sheet together with Key Financials of Constituent companies.

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