Category: Business

Lahore (NUT-Desk)

Apple Inc has cut back production of iPad tablets to allocate more components to the iPhone 13, a sign the global chip supply crunch is hitting Apple harder than previously indicated, Nikkei said on Tuesday, citing multiple sources.

Production of the iPad was down half from Apple’s original plans for the past two months, the newspaper said on its website, adding that parts intended for older iPhones were also being switched to the iPhone 13.

Even though iPhone 13 production hit a snag due to factory closures in Asia and high demand in the second half of the year, Apple has weathered the supply crunch better than many other companies due to its massive purchasing power and long-term supply agreements with chip vendors, eating into its rivals’ market share in the third quarter.

The iPhone maker is prioritising iPhone 13 output in part because it forecasts stronger demand for the smartphone than for the iPad as Western markets begin to emerge from the pandemic, Nikkei said, citing unidentified sources.

 

Lahore (NUT-DESK)

In order to facilitate the business community, the Federal Board of Revenue (FBR) has deferred its policy of switching to the digital mode of payment by November 30.

A notification was also issued in this connection.According to a notification, the tax collection body has allowed an extension in the deadline for implementation of digital mode of payment up to November 30, 2021.

“FBR has extended the deadline for digital payments by corporate sector stipulated in Section 21(la) of Income Tax Ordinance-2001 up to 30th Nov, 2021.FBR has exercised this power conferred under Section 214A of ITO-2001, after receipt of various representations filed by taxpayers,” the notification read.

The digital mode of payment had been made mandatory for the corporate sector, which was to be implemented from November 01, 2021.

Under the new procedure, the business community can repay expenses by check, pay order, bank draft or banking method.

 

Lahore (NUT-DESK)

Shell Pakistan (SPL) has appointed Waqar Siddiqui as the Chief Executive and Managing Director with effect from November 1, 2021.

Siddiqui joined SPL in 2001 and has since held several roles locally and internationally at senior leadership positions.

“In his 24 years of oil downstream experience, he has guided Shell companies through organisational change, strategy development, mergers and acquisitions,” the company said in a statement to the press.

His last role before returning to Pakistan was managing director of Shell Downstream Retail in PT Shell Indonesia. Siddiqui has been a director on the Board of SPL since 2019.

On the educational front, Siddiqui holds a BS degree in Chemical Engineering and MBA in Marketing. In addition, he holds academic and professional accreditations from Harvard Business School and University of British Columbia.

 

LAHORE (NUT-DESK)

Nutshell Group is pleased to announce that former Chief of Air Staff of Pakistan, Air Chief Marshal Sohail Aman (Rtd), has joined the Group as Chief Executive Strategic Engagements.

ACM Sohail Aman (Rtd) is a graduate of Pakistan Air Force War College and has a Masters Degree in Strategic Studies from Karachi University and another one in International Relations from Kings College, London. He is also an alumnus of Royal College of Defence Studies United Kingdom and has attended National and International Security Course at Harvard Kennedy School USA.

ACM has a grand total of over 3,000 fighter hours to his credit. He has commanded a Fighter Squadron, Combat Commanders’ School, a Fighter Base and a Regional Air Command of Pakistan Air Force.

In recognition of his meritorious services, he has been decorated with Nishan-i-Imtiaz (Military), Hilal-i-Imtiaz (Military), Sitara-i-Imtiaz (Military) and Tamgha-i-Imtiaz (Military). He is also a recipient of “The Legion of Merit” of Turkish Armed Forces, “King Abdul Aziz Medal of Excellence” by the Kingdom of Saudi Arabia and the United States “Legion of Merit” – the highest military award of US Armed forces awarded to any foreign military official.

Expressing his views on this development, Mohammad Azfar Ahsan, Founder and CEO, Nutshell Group, said, ‘’I am delighted and honored that Air Chief Marshall Sohail Aman (Rtd) is now part of Nutshell Group.’’

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LAHORE(NUT-DESK)

• BOI OFFICIALS INTERACT WITH CHINESE COMPANIES AT THE PAKISTAN INDUSTRIAL EXPO 2021 TO FACILITATE CHINESE INVESTMENT IN PAKISTAN

Despite the Covid-19 situation, Pakistan and China have been able to sustain a healthy economic and investment partnership and it is high time to join hands for a much-needed economic and investment rebound. More than 100 Chinese companies are participating in the Expo through both physical and online mode of participation.

This is the best possible solution to bring businesses from both countries together for rejuvenation of bilateral investment cooperation. These views were expressed the Additional Secretary/Executive Director General, Board of Investment, Mr. Khashih ur Rehman while inaugurating the Pakistan Industrial Expo 2021 which was arranged by the Everest International Expo.

This is the 5th edition of this expo being arranged by the Chinese company in Lahore to promote business relations between Chinese and Pakistani investors. The expo will continue till October 31 (Sunday), 2021 and being held in offline-online mode.

The Expo was attended by Mr. Asim Ayub, Project Director, CPEC-Industrial Cooperation; Mr. Xiang Zhiqiang, Deputy Director of China-Shanghai Cooperation Organization Local Economic and Trade Cooperation Demonstration Area Management Committee; Mr. Wang Zihai, Executive Director of Pakistan China Center; Mr. Badar uz Zaman, Commercial Counsellor, Embassy of Pakistan in China; Mr. Peng Zhengwu, Acting Consul General of Consulate General of the People’s Republic of China in Lahore; Mr. Xu Daqun, Director of Foreign Trade of Department of Commerce of Henan Province; Mr. Ren Weijun, Director of Foreign Exchange and Cooperation Department, representatives of local Chambers of Commerce, and Everest International Expo. Pvt. Ltd.

Separate breakout rooms have been set up for effective interaction and meaningful participation of investors from Shandong and Henan provinces of China. The suggestions received from the investor community and stakeholders were highly appreciated and noted by the BOI officials with the commitment to take them up at appropriate level.
The Henan province, being the largest province of China has immense potential for future investment projects with Pakistan, and scope for high-quality investment activities between the businesses of the two countries.

Mr. Wang Zihai, Honorary Investment Counsellor (HIC) of Pakistan from China appreciated the role of Board of Investment (BOI), Islamabad, and stated that the Pakistan Industrial Expo 2021 is a unique opportunity to showcase the Chinese projects to Pakistani businesses for joint collaboration.

Mr. Badar uz Zaman, Commercial Counsellor in Pakistan’s Embassy in Beijing, addressed the participants while stating that Pakistan’s economy stands at a crucial point with the potential to steer the nation towards an industrialized future underscored by economic prosperity. For this, Pakistan must attract new investments which will help the country to create jobs and foster economic growth. In this regard, China is the biggest FDI contributor and there is immense capacity for further bilateral investment endeavors.

The Additional Secretary BOI stated that with the commencement of the second phase of CPEC, which mainly focuses on people-to-people and business-to-business (B2B) cooperation, BOI is continuing to take lead on investment promotion, facilitation, and industrial cooperation.

He expressed that the Pakistan industrial Expo 2021 will play a pivotal role in achieving the goals of the second phase of CPEC. He informed the audience that in terms of facilitation of innovation and B2B ties between the two countries, the establishment of a Pakistan-China B2B Investment Portal by BOI in collaboration with its Chinese counterpart, the China Council for International Investment Promotion (CCIIP), will enable the matchmaking prospects of Chinese, local and third-party investors.

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Lahore (NUT-DESK)

Pakistan State Oil (PSO) net profit shot up 133 percent to Rs11.994 billion during the first quarter ended September 30, 2021, translating into earnings per share (EPS) of Rs25.55, a bourse filing said on Thursday.

PSO earned Rs5.144 billion net profit with EPS of Rs10.96 during Q1FY21. Topline Securities said the earnings were better than expected due to inventory gains.

The oil company’s market share increased across its diverse portfolios, achieving substantial volumetric growth compared to the same period last year. A cumulative volume growth of 22.4 percent in white oil and 40.5 percent in black oil was witnessed during the period.

The group collectively posted a net profit after tax of Rs11.7 billion (Q1FY21: Rs5.2 billion).

SCBL Q3 profit rises 52pc

Standard Chartered Bank (Pakistan) Limited net profit increased 52 percent to Rs3.126 billion during the three-month period ended September 30, 2021, translating into EPS of Rs0.81, a bourse filing said.

The bank earned Rs2.057 billion with EPS of Rs0.53 during the same quarter last year. The board did not recommend any entitlement to the shareholders, the notice said.

Total income of the bank increased 10 percent to Rs9.391 billion during July-September 2021, compared to Rs8.566 billion in the same quarter last year.

Bank’s CEO Rehan Shaikh said, “I am pleased to announce our results for the third quarter 2021. Our results demonstrate strong foundations and a clear path towards delivering on our strategic priorities as we stand committed to the socio-economic prosperity of the people of Pakistan. Over the course of last few months, we have made steady progress on our accelerated transformation journey, further enabling us to take advantage of the opportunities that lie ahead.”

BOP Q3 profit grows 43pc

Bank of Punjab net profit increased 43 percent to Rs3.120 billion during the third quarter of this calendar year, translating into EPS of Rs1.18, a bourse filing said.

BOP earned Rs2.178 billion with EPS of Re0.82 during the same period last year. The bank did not announce any dividend. Total income of the bank fell 6 percent to Rs9.686 billion during the period under review, from Rs10.270 billion during Q3CY21. Analyst Sana Tawfik of Arif Habib Limited in her note said earnings posted a sequential uptick led by higher net interest income and lower provisioning.

Bank’s total assets as at September 30, 2021 increased to Rs1,121.55 billion as against Rs1,095.45 billion on December 31, 2020, a statement said. Deposits grew to Rs884.39 billion as against Rs835.07 billion as on December 31, 2020. Investments stood at Rs544.08 billion as against Rs567.79 billion on December 31, 2020. Similarly, gross advances improved to Rs495.27 billion as against Rs442.76 billion as on December 31, 2020 registering a growth of 12 percent, it added.

K-Electric profit spikes 161pc

K-Electric net profit rose 161 percent to Rs2.902 billion during the first quarter of the fiscal year 2021-22, with EPS of Re0.11, as company revenue surged on tariff adjustment.

The power company earned Rs1.111 billion with EPS of Re0.4 during the first quarter of the previous fiscal. The company skipped cash dividend.

Net sales of energy increased 27 percent to Rs86.921 billion during Q1FY22 from Rs68.401 billion in Q1FY21. Tariff adjustment went up 59 percent to add Rs27.218 billion to KE’s revenue, compared to Rs17.149 billion in Q1FY21. These resulted in sharp growth of 33 percent in total revenue, which clocked in at Rs114.139 billion, up from Rs85.55 billion during the same quarter last fiscal. Cost of sales grew 36 percent to Rs97.449 billion, against Rs71.681 billion during the same period last year. Operating expenses increased 435 percent to Rs1.81 billion for the quarter ended September 30, up from Rs338 million during Q1FY21.

BankIslami Q3 profit inches up

BankIslami Limited net profit inched up less than one percent to Rs693.270 million during the third quarter of the current year, with EPS of Re0.6253, a bourse filing said.

The bank earned Rs688.571 million with EPS of Re0.6211 during the same quarter last year. The bank did not announce any dividend.

Keeping in view the growth in domestic demand underpinned by supportive fiscal budget and accommodative monetary policy, BankIslami Pakistan expanded its Islamic Financing book by 19.6 percent via growing its exposure towards corporate and consumer segments on the back of its robust risk underwriting framework, a statement said.

Owing to this, infection ratio of the bank also reduced to 10.7 percent at September 2021 vis-à-vis 12.1 percent at December 2020, consequently improving the credit health of the overall financing portfolio.

PSMC posts Rs993.71mln Q3 profit

Pak Suzuki Motor Co (PSMC) posted a net profit of Rs993.71 million for the quarter ended September 30, with EPS of Rs12.07, a bourse filing said.

The auto company posted a loss of Rs546.95 million during the same quarter last year, with loss per share of Rs6.65, notice to the PSX said. The company skipped a dividend for the quarter under review. The company said its sales for the quarter rose to Rs50.26 billion, compared with Rs22.60 billion a year earlier. The cost of sales remained at Rs47.59 billion, up from Rs21.43 billion a year ago.

For the nine-month period ended September 30, the company recorded a net profit of Rs2.19 billion, up from losses of Rs2.59 billion during the same period last year.

Ismail Iqbal Securities in its note said, “The result is above our estimate of Rs9.99/share, where the deviation mainly arose from lower-than-expected distribution and finance cost; however, the impact was partially offset due to lower than estimated gross margins.”

FCCL profit jumps 96pc

Fauji Cement Company Limited (FCCL) net profit surged 96 percent to Rs1.359 billion during the first quarter of the current fiscal, translating into EPS of Re0.98, a bourse filing said.

The company earned a profit of Rs695.584 million with EPS of Re0.5 during the same quarter last year.

Net revenue of the company went up 26 percent to Rs6.936 billion compared to Rs5.5 billion during Q1FY21. This was led by a notable jump in retention prices alongside a major one percent increase in total sales (three percent jump in domestic dispatches and 21 percent dip in exports), a note by Arif Habib Limited said. Operating profit of FCCL climbed up 83 percent to Rs1.782 billion, compared to Rs976 million during the same quarter last year.

During Q1FY22 gross margins settled at 30 percent vis-à-vis 22 percent in the same period last year aided by volumetric growth, higher retention prices as well as rupee appreciation, which offset the impact of higher coal prices.

Lucky Cement Q1 profit mounts 47pc

Lucky Cement Limited net profit went up 47 percent to Rs3.284 billion during the first quarter ended September 30, 2021, translating into EPS of Rs10.15, a bourse filing said.

The company earned Rs2.226 billion with EPS of Rs6.89 during Q1FY21.

Analyst Misha Zahid of Arif Habib Limited in her note said the rise in profit was led by strong topline growth. Company’s topline witnessed a surge of 18 percent YoY to Rs16.9 billion in Q1FY22 amid significant hike in retention prices in north and south tagged with four percent uptick in domestic offtake.

Gross margin underwent a slight decline of 568bps to 27.3 percent during Q1FY22 (Q1Fy21: 27.9 percent), largely led by higher coal, energy and packaging costs, while rupee appreciation and strong topline growth provided cushion, the note added.

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Lahore (NUT-DESK)

A surge in Microsoft Corp’s shares nearly unseated Apple Inc as the world’s most valuable company on Wednesday, a day before the iPhone maker reports its quarterly results.

Fueled by strong quarterly growth in its Azure cloud-computing business, Microsoft’s shares jumped 4.2% to end at a record $323.17, elevating the software maker’s market capitalization to $2.426 trillion, just short of Apple’s $2.461 trillion valuation, according to Refinitiv data.

Apple’s shares dipped 0.3% ahead of its report due after the bell on Thursday, with investors focused on how the global supply-chain crisis is challenging the company’s ability to meet demand for its iPhones.

Microsoft’s stock has rallied 45% this year, with pandemic-induced demand for its cloud-based services driving sales. Shares of Apple have climbed 12% in 2021.

Apple’s stock market value overtook Microsoft’s in 2010 as the iPhone made it the world’s premier consumer technology company. The two companies have taken turns as Wall Street’s most valuable company in recent years, with Apple holding the title since mid-2020.

In its report late on Tuesday, Microsoft forecast a strong end to the calendar year thanks to its booming cloud business, but it warned that supply-chain woes will continue to dog key units, such as those producing its Surface laptops and Xbox gaming consoles.

Analysts on average expect Apple to report September-quarter revenue up 31% to $84.8 billion and adjusted earnings per share of $1.24, according to Refinitiv.

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LAHORE (NUT-BUSINESS)

The Pakistani rupee on Tuesday depreciated to Rs175.27 against the US dollar — “the lowest level since August 1947,” according to one analyst — owing to an increase in demand for the foreign currency in the inter-bank market.

The currency lost 84 paisas or 0.48% to hit its lowest level of Rs175.27 against the greenback.

The rupee has maintained the downtrend for the past five months. It has lost 15.10% (or Rs23) to date, compared to the 22-month high of Rs152.27 recorded in May.

With a fresh decline of 0.48%, the rupee has depreciated 11.25% (or Rs17.73) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed. It is pertinent to mention here that the State Bank of Pakistan had adopted a flexible market-based exchange rate regime in 2019.

“The rupee is expected to remain under pressure if talks between the International Monetary Fund (IMF) and Pakistan remain inconclusive,” currency traders forecast, as they believe the massive depreciation of the rupee against the dollar was also caused by panic buying and forward booking by importers because of fears of a possible failure of IMF-Pakistan talks.

Traders also held higher imports coupled with rising commodity prices in the international markets responsible for the strengthening of the dollar against the rupee.

However, apart from the dollar demand by the importers, the panic selling and forward booking of the dollar is also contributing to the rupee depreciation against the greenback. The international crude oil prices are hovering above $85/barrel, which has been making imports of petroleum products for domestic needs pricier.

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Lahore (NUT-DESK)

The Government has planned to put three Highways of Motorway on auction as part of raising funds in the tune of Rs. 100 billion through Sukuks for the period of 5 years. The government identified these highways as the assets and invited Islamic banks and financial sector for bidding to be held on October 26 and the settlement date is October 29, 2021.

These highways include the following:
M-3 (Lahore – Abdul Hakeem):
M-5 (Punjab Portion):
M-5 (Sindh Portion)

According to the details released by State Bank of Pakistan (SBP), the Sukuks have been structured to raise Rs. 25 billion on fixed rental rate (FRR) and Rs.75 billion on variable rental rate (VRR).  A few weeks ago, the government also auction three highways to raise Rs. 100 billion.

These include highways are the M-1 (Islamabad—Peshawar), the M-4 (Pindi Bhattian—Faisalabad Motorway), and the E-35 (Hassanabdal–Mansehra).
The government planned to generate over Rs. 1 trillion fund from the Islamic banking industry which has been facing an issues of liquidity with deposits of over Rs. 3 trillion.

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