KARACHI: Al Ghazi Tractors Limited (AGTL) announced Rs 466million earnings of first quarter during the current fiscal year, down 24 percent YoY.
The YoY decrease in earnings can be attributed to 18 percent YoY decline in the top line due to 19 percent YoY decline in volumetric sales and 64 percent YoY decline in other income on the back of depleting cash reserves.
The result announcement also accompanied first interim cash dividend of Rs 25.0/share. With target price of Rs 486/sh, experts have an overweight call on the scrip offering a total return of 27 percent (upside 20 percent, D/Y 7 percent) from the last closing.
Meanwhile, Kot Addu Power Company Limited (KAPCO) has announced its 9MFY16 results, wherein the power producer has posted net earnings of Rs 6.2 billion (EPS Rs 7.05), down 13 percent YoY.
The decline in earnings is mainly due to likely higher O&M expenditure and 43 percent YoY lower other income (explained by lower penal mark-up income owing to improved recoveries).
However, the decline in profitability was partially compensated by lower fuel losses backed by 44 percent YoY drop in HSFO prices and 54 percent YoY drop in finance cost backed by decreasing debt levels and continued monetary easing.
