K-Electric (KEL): 4QFY17 EPS Rs0.14, down 61% YoY; FY17 EPS Rs0.38, down 67% YoY
- K-Electric (KEL) posted 67% YoY decline in its FY17 earnings to Rs0.38 per share as the company’s Multi Year Tariff (MYT) was revised down to Rs12.81/kwh from Rs15.5/kwh. The new MYT is applicable for the period of 7-Years commencing from Jul 01, 2016.
- To recall, KEL requested NEPRA to increase tariff to Rs16.1/Kwh, however, NEPRA turned down KEL’s request twice and announced MYT of Rs12.81/Kwh.
- The KEL is still contesting its MYT matter in NEPRA’s appellate tribunal, however the company has withdrawn its case from Sindh High Court (SHC) in order to finalize its accounts for FY17, as stated in KEL’s 28th May, 2019 notice to exchange.
- Other income of the company went up by 41% YoY. Finance cost declined by 24% YoY.
- The company availed tax credit of Rs1.7bn during FY17 vs. Rs6.9bn in FY16 as the company is availing benefits of its previous year losses.
- Key risks to company includes 1) unfavorable decision related to MYT, and 2) increase in T&D losses from allowed threshold.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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