Four Major Corporations Project Promising 1QFY24 Earnings

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General

Four Major Corporations Project Promising 1QFY24 Earnings

October 23, 2023

Karachi, Earnings forecasts for four prominent corporations - FCCL, CHCC, MUGHAL, and ISL - highlight promising performances, with anticipated surges in revenues, varying profit after tax (PAT) figures, and shifts in gross margins. These projections signal the continuing economic dynamism within Pakistan's corporate sector.

According to a research report by AKD Securities Limited, FCCL is set to unveil its 1QFY24 results tomorrow. The company's PAT is forecasted to be PkR2.3bn, reflecting an EPS of PkR0.93 - a significant growth from PkR472mn (EPS: PkR0.19) in 4QCY23. Key drivers include a 27% quarterly uptick in the topline and a 20% sales volume growth. Gross margins, however, are anticipated to dip from 39.3% in 4QCY23 to 30.1% for this quarter, largely due to a prior reclassification of freight charges. The quarter's finance cost is projected at PkR1.2bn, influenced by increased borrowings and interest rates.

Today, CHCC is scheduled to announce an expected EPS of PkR6.7 for 1QFY24, reflecting a NPAT of PkR1.3bn. This showcases a stark contrast from an EPS of PkR0.5 in 4QFY23. Gross margins are predicted to improve to 28.4%, primarily because of decreased coal costs during the period. Expected finance costs for the quarter stand at PkR500mn, stable from the previous quarter.

MUGHAL will declare its 1QFY24 results on 27th October, where earnings are projected at PkR1.1bn, signifying an EPS of PkR3.34 - a leap from an EPS of PkR2.48 in the last quarter. This surge can be attributed to the growth in complementary indicators, including cement sales and steel imports. Notably, the anticipated finance costs will be PkR1.45bn, marking a 4% decrease from the previous quarter.

Lastly, ISL is set to release its 1QFY24 results tomorrow. The earnings are anticipated to be PkR1.11bn with an EPS of PkR2.56, a decline from the PkR1.94bn (EPS: PkR4.46) of the preceding quarter. This reduction is mainly due to the normalization of gross margins, which are projected to be 14.9% for this quarter, down from a remarkable 23.6% in 4QFY23. However, the company has reduced its total borrowings by 77% YoY, a proactive step towards reducing its liabilities.