Karachi, September 12, 2022 (PPI-OT): DGKC, FCCL and PIOC: 4QFY22 Result Previews

DGKC – earnings to clock in at PkR9.86/sh in FY22F: DGKC is slated to announce its 4QFY22 result on 13th Sep’22, where we expect the company to record an unconsolidated nominal profit of PkR0.7bn (EPS: PkR1.60) vs NPAT of PkR0.873mn (EPS: PkR2.0) in 4QFY21. This will take FY22 NPAT to PkR4.32bn (EPS: PkR9.86) against NPAT of PkR3.7bn (EPS: PkR8.5) in FY21. For 4QFY22, the topline is expected to remain flat as the decrease in offtakes was offset by higher retention prices. Likewise, gross margins are likely to clock in at 21.0% vs 18.6% in 3QFY22. Dividend income from MCB is likely to result in a gain of PKR0.5bn which will help bolster the company’s bottom-line. Moreover, the decline in the bottom line is a result of the super tax applicable for the quarter where ETR for 4QFY22 is likely to clock in at 62% vs 26% in 3QFY22. Consequently, unconsolidated earnings for 4QFY22 are expected to stand at PkR0.70bn, down 52/20% QoQ/YoY.

FCCL – earnings to clock in at PkR2.2/sh in FY22F: FCCL is slated to announce its 4QFY22 result on 20th Sep’22, where we expect the company to record a nominal profit of PkR0.78bn (EPS: PkR0.36) vs NPAT of PkR0.76mn (EPS: PkR0.55) in 4QFY21. For FY22, NPAT likely to clock in at PkR4.9bn (EPS: PkR2.2) against NPAT of PkR3.4bn (EPS: PkR1.55) in FY21. For the quarter, the topline is expected to post robust growth of 19.8%QoQ largely driven by higher retention prices. Likewise, gross margins are expected to be in the region of 27.0% vs 25.4% in 4QFY22. Moreover, the decline in the bottom line is a result of the super tax applicable for the quarter where ETR for 4QFY22 is likely to clock in at 66% vs 32% in 3QFY22.

PIOC – earnings to clock in at PkR8.93/sh in FY22F: PIOC is scheduled to announce its 4QFY22 result where we expect the company to record a nominal profit of PkR0.4bn (EPS: PkR1.76) vs NPAT of PkR0.68mn (EPS: PkR3.0) in 4QFY21. This will take FY22 NPAT to PkR2.03bn (EPS: PkR8.93) against NPAT of PkR1.98bn (EPS: PkR8.7) in FY21. The topline for the quarter is expected to post robust growth of 17.1%QoQ largely driven by higher retention prices. Similarly, gross margins are likely to clock in at 21.9% vs 21.3% in 4QFY22. Moreover, the decline in the bottom line is a result of the super tax applicable for the quarter where ETR for 4QFY22 is likely to clock in at 62% vs 36% in 3QFY22. While higher finance cost (+6%QoQ) also dampens the bottom line.