Fundamental Analysis by Saleem

7/30/2019 Fundamental Analysis by Saleem

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A method of evaluating a security that measure its intrinsic value by examining related economic,

financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything

that can affect the security's value, including macroeconomic factors (like the overall economy and

industry conditions) and company-specific factors (like financial condition and management).

Analysis Framework:

These analysis include following 3 steps:

Economy Analysis Industry Analysis Company Analysis

Economy Analysis

IndustoryAnalysis

Company

Analysis


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The performance of a company depends on the performance of the economy. Different economic

conditions have strong impact on determination ofthe value of a companys stock.

The level of economy has an impact on investment in many ways. If the economic growth

rapidly, the industry can also be expected to show rapid growth and vice versa. When the level of

economic activity is low, stock price are low, and when the level of economic activity is high, the stock

price are high reflecting the prosperous outlook for sales and profit of the firms.

Pakistan economic conditions in financial year 2008, value of Pakistani rupee has decreased in

value because of political and economic instability. Pakistan is known to have one of fastest developing

economies in world. Though it is a poor country, Economic conditions in Pakistan point out that growth

rate has been better than global average growth rate.

Other important variable to determine economic performance of Pakistani economy to make investment

decision can be seen below.

The rate of growth is an important variable for investment decision making. The important measure

of National income is GDP (Gross domestic product), GNP (Gross national Product) and NNP (Net

national product). All of these measures indicate the growth rate of an economy and the growth rate of

Pakistan currently is 2.4% (2011)

The Real GDP growth is estimated to remain at around 2.4 percent compared to the target of 4.5percent. The set back was due to the agriculture sector which was badly affected by floods. However, the

strong performance of services sector which grew at 4.1 percent has kept the overall growth in a

reasonable range

Year 1999 2000 2001 2003 2004 2005 2007 2008 2009 2010 2011

GDP 3.1 4.8 3.3 5.5 6.1 6.6 5.3 2.7 4.3 4.8 2.4

GNP 1.07 2.28 -0.09 0.40 6.46 5.94 3.95 -0.39 1.07 1.21 4.2


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At the time of depression, demand is low and falling. Inflation is high and so are interest

rates. Companies, crippled by high borrowing and falling sales, are forced to curtail production,

close down plants built at times of higher demand, and let workers go.

During this phase, the economy begins to recover. Investment begins anew and the demand

grows. Companies begin to post profits. Conspicuous spending begins once again.

In the boom phase, demand reaches an all time high. Investment is also high. Interest rates are

low. Gradually as time goes on, supply begins to exceed the demand. Prices that had been rising

begin to stabilize and even fall. There is an increase in demand. Then as the boom period matures

prices begin to rise again.

The economy slowly begins to downturn. Demand starts falling.. Interest rates and inflation are

high. Companies start finding it difficult to sell their goods. The economy slowly begins to downturn.


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Inflation has reared its head in the first half of the year and posed a challenge for economic

management. Two price indices like CPI and SPI witnessed a clear downtrend in recent months; however,

WPI remained on upward trajectory. The inflation rate as measured by the changes in Consumer PriceIndex (CPI) after reaching peak at 25.3 percent in August 2008, showing easing since November 2008

with slight variations. The average CPI inflation for fiscal year 12, at 11 percent

WPI inflation is primarily driven by inordinate spike in cotton prices because of its huge

weight in the index. CPI inflation has moderated since January, 2011. The CPI inflation has escalated by

0.23 on month-on- month (M-o-M) basis and 13.2 percent on year- on-year (Y-o-Y) basis in May 2011.

The cumulative increase in July-May 2010-11 is 14.0 percent as against 11.6 percent in the comparative

period of last year.

The recent slow-down in inflation has been due to better availability of food items, increased

sugar production and a very good looking wheat crop that is exerting downward pressure on wheat andother products.

3- :The State Bank of Pakistan (SBP) has slashed discount rate by 150 bps to 10.5 percent for a

period of two months, a very surprising and welcome decision for industrialists and business community

in the country.

The decision was made in the light of controlled inflation that came down to 9.6% in July, while

the incentive aimed at giving the private sector a chance to enhance investment for sustainable economic

growth.


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Exchange rate is the price of one currency in re lation to another. In a slightly different

perspective, it expresses the national currencys quotation in respect to foreign ones. Thus, exchange rate

is a conversion factor, a multiplier or a ratio, depending on the direction of conversion. It is believed that

if exchange rates can freely move, it may turn out to be the fastest moving price in the economy, bringingtogether all the foreign goods with it.

Exchange RatesCountry Selling Buying

U.S.A 95.35 95.15

U.K 153.10 152.78EURO 124.61 124.35

CANADA 96.75 96.55

A stable political environment is necessary for steady, balanced growth. If a country is ruled by a

stable government which takes decisions for the long-term development of the country, industry and

companies will prosper.

Industry analysis is a market strategy tool used by investors to determine about the condition of

a particular industry to for making investment decision to invest in that industry by ensuring

about the risks and return from the investment in that industry .

We will make a an analysis of following industry of Pakistan.

Pakistan Oil and Gas Industry

Pakistan oil and gas industry is going through a process of transition as IT is experiencing a

new wave of privatization. Government of Pakistan has announced its intention of privatizing

37% of its 75% stake in Qadirpur gas field and also transferring management responsibility to

private companies. Aware of rich oil and gas reserves, oil and gas industry of Pakistan is putting

in steady efforts to make best utilization of resources and build a strong production base.


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Reports of oil and gas industry of Pakistan reveals this countrys current average daily oil

production is about 3,800 net barrels and natural gas of 73 net million cubic feet. Despite such

huge potential, Petroleum Ministry of Pakistan reported high trade deficit due to major gap

between import and export value. Oil import of Pakistan is expected to reach $6.5 billion in 2009

and government aims at formulating policies to reduce import dependence and promote self-

reliance by triggering exploitation.

Average Daily employment in numbers=11790

Employment Cost (Million Rs.)=1921

Average Daily employment in numbers=20854

Employment Cost (Million Rs.)=4142

The Oil and gas sector, due to major reforms introduced during the last two and half years, has

so far benefited the economy to the tune of Rs.25 Billion and in US$420.88 millions.

.

The total number of installed factories of oil in Pakistan = 83

The total number of installed factories of gas in Pakistan=82

Pakistan State Oil Co.Ltd.(Pso) 64.2%Shell Pakistan Ltd.(Spl) 19.9%Chevron Pakistan Ltd.(Caltex)(Copl) 7.3%Total Parco Pakistan Ltd.(Tppl) 4.00%Attock Petroleum Ltd.(Apl) 2.6%Parc0-Pearl 1.3%Admore Gas (Pvt)Ltd 0.7%


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A. Askar Oil Services(Pvt)LtdB. Hascombe Storage(Pvt) Ltd.C. Overseas Oil Trading Co.(Pvt)Ltd.D. Bakri Trading Company Pakistan(Pvt)Ltd.E. Bosicor Pakistan Ltd


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Oil and Gas

SYMBOL OPEN HIGH LOW CURRENT CHANGE VOLUME

Attock PetroleXD 488.39 491.00 488.39 489.56 1.17 70,500

Attock RefineryXD 161.79 169.87 159.70 169.47 7.68 2,933,400

Burshane LPGSPOT 38.56 39.90 38.50 38.90 0.34 48,000

Byco Petroleum 8.14 8.25 8.08 8.14 0.00 578,500

Mari Gas Company 101.68 102.80 100.40 100.55 -1.13 64,000

National RefinXD 222.27 223.50 220.50 221.78 -0.49 37,500

Oil & Gas DevelXD 175.27 178.00 174.65 177.74 2.47 308,900

P.S.O.XDXB 210.77 213.25 210.51 211.12 0.35 284,600

Pak OilfieldsXD 405.97 411.00 405.50 406.81 0.84 399,000

Pak Petroleum Ltd. 173.00 174.00 173.06 173.53 0.53 134,700

Pak Refinery 59.64 59.70 59.01 59.50 -0.14 3,000

Shell Pakistan Ltd. 136.03 136.50 135.00 135.13 -0.90 6,800

The first step in industry is to determine the cycle it is in, or the stage of maturity of the

industry. All industries evolve through the following stages:

1) Pioneering stage2) Expansion or growth stage3) Stagnation or maturity stage4) Decay stage


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At the first stage, the industry is new and it can take some time for it to properly establish

itself.

Once the industry has established itself it enters a growth stage. As the industry grows,

many new companies enter the industry.

After the halcyon days of growth, an industry matures and stabilizes. Rewards are low

and so too is the risk. Growth is moderate. Though sales may increase, they do so at a

slower rate than before. Products are more standardized and less innovative and there are

several competitors.

Finally, the industry declines. This occurs when its products are no longer popular. This

may be on account of several factors such as a change in social habits The film and video

industries.

New entrants increase the capacity in an industry and the inflow of funds. The question that

arises is how easy is it to enter an industry?

There are some barriers to entry:

1- Economies of scale2- Product differentiation3- Capital requirement4- Switching costs5- Access to distribution channels


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At the final stage of fundamental analysis, the investor analyzes the company. Investors conduct company

analysis to evaluate securities, gathering information about the company's profile, products or services

and profitability and this analysis gives a basis for the valuation of shares and decisions on when to buy,sell and hold shares.

This analysis has two thrusts:

How has the company performed vis--vis other similar companies and How has the company performed in comparison to earlier years?

It is imperative that one completes the politico economic analysis and the industry analysis before a

company is analyzed because the company's performance at a period of time is to an extent a reflection of

the economy, the political situation and the industry. What does one look at when analyzing a company?

The different issues regarding a company that should be examined are:

Ratio Analysis of shell and pso

Shows a companys ability to pay off its current liabilities from its current assets.

Formula=

SHELL

2007 Current Assets 20041859 Current Liabilities 19612115


PSO




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Shells Current ratio increased significantly as compared to previous year although the volume ofcurrent

liabilities increased as a whole due to increase in trade payables but current assets grew at a rapid rate.

The reason behind this was the significant change in the value of stock in trade. This is due to higher

prices of petroleum products during that time and the company is using FIFO method for its inventory.

Also, the working capital requirements from the GOP was increased for MNCs.

Shell current ratio increased more rapidly as compared to PSO because PSO current liabilities grew at the

same level as their current assets. PSO benefited from not being an MNC.

b.Quick RatioShows a firms ability to meet its current liabilities with its most liquid assets.

Formula=

Shell

2007 CurrentAssets

20041859 Current

Liabilities

19612115 Inventory 8244054

2008 CurrentAssets

30220209 CurrentLiabilities

23307811 Inventory 18095523

PSO

2007 CurrentAssets

62513273 Current

Liabilities

51385727 Inventory 29562055

2008 CurrentAssets

115878692 Current

Liabilities

93736220 Inventory 62360067

2007 2008

Shell 1.02 1.30

Pso 1.22 1.24

1.02

1.301.22

1.24

0.80

1.00

1.20

1.40

1.60

Ratio

Value

Trend Analysis of Current Asset Ratio


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Shells Quick ratio decreased due to higher prices of petroleum products, as the volume allocated for

inventories was higher.

There is no significant difference between the decreases of the ratio of both the companies as compared to

their previous benchmarks.

Shows the percentage of the firms assets that are supported by debt financing.

Formula=

Shell

2007 Total Debts 19751156 Total Assets 29211927


PSO



2007 2008

Shell 0.60 0.52

Pso 0.64 0.57

0.60

0.52

0.64

0.57

0.40

0.50

0.60

0.70

0.80

Ratio

Value

Trend Analysis of Quick Ratio


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Shells total debt increased in absolute amount but not at a pace of changing total assets thats why a

minor fall in debt ratio is seen.

Psos total debt increased at a higher pace than its total assets mainly due to the change in current

liabilities. Overall PSO has become more leveraged than shell. The main reason behind this was the

higher amount of GOPs receivables were not paid to PSO and to tackle with cashflow problems thecompany had to finance more than previous.

Shows the extent to which the firm is financed by debt.

Formula=

Shell

2007 Total Debts 19751156 Total Equity 9460771


PSO



2007 2008

Shell 0.68 0.66

Pso 0.72 0.76

0.68 0.66

0.72 0.76

0.50

0.60

0.70

0.80

0.90

1.00

Ratio

Value

Trend Analysis of Total Debt Ratio


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Shells debt to equity ratio decreased due to increase in its retained earnings.

Shell has maintained its debt to equity ratio better than PSO whose ratio has fluctuated apparently than

the previous year. This effect can be seen in the previous total debts ratio. The main reason behind that

was to finance the excessive receivables not yet paid by GOP.

Shows a firms ability to cover its interest charges.

Formula=

Shell

2007 EBIT 1166405 Interest Expense 909919


PSO



2007 2008

Shell 2.09 1.91

Pso 2.57 3.10

2.09 1.91

2.57

3.10

1.50

2.00

2.50

3.00

3.50

Ratio

Value

Trend Analysis of Debt to Equity Ratio


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Shell has significantly improved its time interest earned ratio due to the massive increase in its operating

income.

Although shell interest earned ratio increased significantly but it is still 50 percent as compared to Pso

who is at good position.

Indicates how successful the firm is in collection of receivable

Formula=

Shell2007 Credit Sales 130129844 Avg A/R 4905639.5

2008 Credit Sales 157626491 Avg A/R 4578132.5

PSO

2007 Credit Sales 411057592 Avg A/R 12657917

2008 Credit Sales 583213959 Avg A/R 23752347

2007 2008

Shell 1.28 8.74

Pso 6.86 16.41

1.28

8.746.86

16.41

0.00

5.00

10.00

15.00

20.00

Ratio

Value

Trend Analysis of Times Interest Earned


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Shell has managed to control its receivable volume with the growing sales level. Thats why a increase in

the ratio has been seen which shows its efficiency in collecting receivables while at the same time

increasing its sales volume.

Pso s ratio has been deteriorated as compared to previous year which shows its relative inefficiency in

collecting receivables as compared to Shell. The main amount of receivables which had affected thefigures is from Government of Pakistan and IPPs.

Average number of days the receivables is outstanding.

Formula=

Shell

2007 Days 365 ReceivableTurnover

26.53

2008 Days 365 ReceivableTurnover

34.43

PSO

2007 Days 365 Receivable Turnover 32.472008 Days 365 Receivable Turnover 24.55

2007 2008

Shell 26.53 34.43

Pso 32.47 24.55

26.53

34.4332.47

24.55

20.00

25.00

30.00

35.00

40.00

Ratio

Value

Trend Analysis of Receivable Turnover


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Shell has managed to control its receivable volume with the growing sales level. Thats why a increase in

the ratio has been seen which shows its efficiency in collecting receivables while at the same time

increasing its sales volume.

Pso s ratio has been deteriorated as compared to previous year which shows its relative inefficiency in

collecting receivables as compared to Shell.

Indicates the effectiveness of the inventory management practices of the firm.

Formula=

Shell

2007COGS 108664932 Avg. Inventory 91119702008 COGS 124694471 Avg. Inventory 13169788.5

PSO

2007 COGS 337446896 Avg. Inventory 28865344

2008 COGS 465254907 Avg. Inventory 45961061

2007 2008

Shell 13.76 10.60

Pso 11.24 14.87

13.76

10.6011.24

14.87

8.00

10.00

12.00

14.00

16.00

Ratio

Val

ue

Trend Analysis of Average Collection Period

(Days)


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Shells situation in that particular section has deteriorated significantly because of the large accumulation

of inventory, may be not in physical quantities but in rupee amount due to higher oil prices. This can

adversely affects the company earnings in the future.

In comparison with Shell Pso has maintained its inventory turnover ratio more efficiently although a

decrease in ratio can be seen there also.

Average number of days before inventory is turned into accounts receivable through sales.

Formula=

Shell

2007 Days 365 InventoryTurnover

11.93


9.47

PSO


11.69


10.12

2007 2008

Shell 11.93 9.47

Pso 11.69 10.12

11.93

9.47

11.6910.12

8.00

9.50

11.00

12.50

14.00

Ratio

Value

Trend Analysis of Inventory Turnover

(Days)


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Shells situation in that particular section has deteriorated significantly because of the large accumulation

of inventory, may be not in physical quantities but in rupee amount due to higher oil prices. This can

adversely affects the company earnings in the future.

In comparison with Shell Pso has maintained its inventory turnover ratio more efficiently although a

decrease in ratio can be seen there also.

Indicates the overall effectiveness of the firm in utilizing its assets to generate sales.

Formula=

Shell

2007 Net Sales 130129844 Avg Total Assets 287521632008 Net Sales 157626491 Avg Total Assets 34438393

PSO

2007 Net Sales 411057592 Avg Total Assets 72452919.5

2008 Net Sales 583213959 Avg Total Assets 100923667.5

2007 2008

Shell 30.61 38.55

Pso 31.22 36.06

30.61

38.55

31.22

36.06

28.00

30.00

32.00

34.00

36.00

38.00

40.00

Ratio

Value

Trend Analysis of Inventory Turnover (Days)


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Shell Total asset turnover remained at the same level as the previous year.

Psos ratio also maintained at its previous level but Pso is more efficient in utilizing its assets overall.

Indicates the efficiency of the operations and the firms pricing policies.

Formula=

Shell

2007 Gross Profit 6380502 Net Sales 130129844


PSO



2007 2008

Shell 4.53 4.58

Pso 5.67 5.78

4.534.58

5.67

5.78

3.00

4.00

5.00

6.00

7.00

Ratio

Value

Trend Analysis of Total Asset Turnover


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GPM of Shell has doubled from the previous year which is a good sign for companys operations. That

might because of increasing oil prices.

GPM of Pso also doubled because of the same effect but the overall level of Shell is far higher than Pso.

Indicates the firms profitability after taking account of all expenses and income taxes.

Formula=

Shell

2007 Net Profit 706659 Net Sales 130129844


PSO



2007 2008

Shell 4.90% 9.61%

Pso 2.98% 5.15%

4.90%

9.61%

2.98%

5.15%

0.00%

10.00%

20.00%

Ratio

Value

Trend Analysis of Gross Profit Margin


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Shells NPM has improved a lot from the previous year level. This must be the same effect as seen in the

companys GPM.

Psos NPM has also improved but not as significant as Shells. In fact the company was in better position

as compared to shell previous year.

Indicates the profitability on the assets of the firm (after all expenses and taxes).

Formula=

Shell

2007 Net Income 706659 Avg Total Assets 28752163

2008 Net Income 5137094 Avg Total Assets 34438393

PSO

2007 Net Income 4689798 Net Sales 72452919.5

2008 Net Income 14053795 Net Sales 100923667.5

2007 2008

Shell 2.46% 14.92%

Pso 6.47% 13.93%

2.46%

14.92%

6.47%13.93%

0%

8%

16%

24%

Ratio

Value

Trend Analysis of RETURNONINVESTMENT


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The companys ROI has also improved as seen in the previous ratios.

Shell ROI has increased more massively as compared to Pso.

Indicates the profitability to the shareholders of the firm (after all expenses and taxes).

Formula=

Shell

2007 Net Income 706659 Avg Equity 9808758.5


PSO

2007 Net Income 4689798 Avg Equity 20876138


2007 2008

Shell 7.20% 44.53%

Pso 22.46% 54.15%

7.20%

44.53%

22.46%

54.15%

0%10%

20%

30%

40%

50%

60%

Ratio

Value

Trend Analysis of Return on Equity


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A massive increase is seen on the Shells side with respect to ROE.

Despite Shells massive increase in ROE, Pso is still ahead in this respect.

The portion of a company's profit allocated to each outstanding share of common stock.

Formula=

Shell

2007 Profit AfterTaxation

706659000 No. of Commonshares Outstanding

54790313



54790313

PSO



171518901



171518901

2007 2008

Shell 12.90 93.76

Pso 27.34 81.94

12.90

93.76

27.34

81.94

0.00

20.00

40.00

60.00

80.00

100.00

Ratio

Value

Trend Analysis of EARNINGS PER SHARE


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There is a huge improvement is EPS of Shell as compared to previous years performance.

EPS of both companies has almost no significant difference but improvement is seen in Shells

performance which was far below from Psos level previous year.

A valuation ratio of a company's current share price compared to its per-share earnings.

Formula=

Shell2007 Market Price Per

Share410.05 Earnings Per

Share12.90

2008 Market Price PerShare

417 Earnings Per

Share

93.76

PSO

2007 Market Price PerShare

391.45 Earnings Per

Share

27.34

2008 Market Price Per

Share

417.24 Earnings Per

Share

81.94

2007 2008

Shell 31.79 4.45

Pso 14.32 5.09

31.79

4.45

14.32

5.090.00

10.00

20.00

30.00

40.00

R

atio

Value

Trend Analysis of PRICE PER EARNING RATIO


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Price per earnings ratio has deteriorated but when compared to previous years EPS, it is evident that is

not because of decrease in price share but because of significant increase in earnings of company. In

summary shareholders did not lose confidence but enjoyed increased earnings.

Likewise Psos P/E ratio has also decreased almost to the same level as of Shells.

Balance Sheet and Income Statement

ASSETS 2008 2007

Non-current assets

Fixed assets 6826848 6579993

Long-term investments 2134783 2015535

Long-term loans and advances 146381 182579

Long-term deposits and prepayments 201718 110994

Long-term debtors 134920 328727

Deferred taxation - net 280967

Total Non-current assets 9444650 9498795

Current assets

Stores and spares 13328 30286

Stock-in-trade 18095523 8244054

Trade debts 4904940 4251325

Loans and advances 47029 42720

Trade deposits and short-term prepayments 207864 140239

Other receivables 6079111 5970763

Taxation 219715

Cash and bank balances 872414 814530

Total Current assets 30220209 19713632

Total Assets 39664859 29212427


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EQUITY AND LIABILITIES 2008 2007

Equity

Share capital 547904 547904

Reserves 2233026 2233026

Unappropriated profit 10830708 6679841Total Equity 13611638 9460771

LIABILITIES

Non-current liabilities

Deferred taxation - net 51574

Liabilities against assets subject to finance lease 2216 547

Long-term loan 2500000

Asset retirement obligation 191620 138494Total Non-current liabilities 2745410 139041

Current liabilities

Current maturity of liabilities against assets subject to finance

lease56742 32203

Short-term running finances utilized under mark-up

arrangements4338339 725836

Short-term loans 1500000 6810000

Trade and other payables 16483008 11912496

Mark-up accrued 157268 131580Taxation 772454

Total Current liabilities 23307811 19612115

Total Liabilities 26053221 19751156

Total Equity and Liabilities 39664859 29211927


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SHELL Income Statement Regular

2008 2007

Sales 157,626,491 130,129,844Non-fuel retail

sales 119,915 141,615

others 20,205 17,909

other revenue 341,349 447,517

Net Sales 158,107,960 130,736,885

Sales tax 18,263,271 15,691,451

Net revenue 139,844,689 115,045,434

Cost of products sold 124,694,471 108,664,932

Gross Profit 15,150,218 6,380,502

Distribution expenses 2,950,422 3,366,555

Administrative and marketing expenses 2,109,289 1,716,707

10,090,507 1,297,240

Other operating income 306,453 215,322

10,396,960 1,512,562Other operating expenses 1,915,601 377,978

Operating profit 8,481,359 1,134,584

Finance cost 970,267 878,098

7,511,092 256,486

Share of profit of associate - net of tax 212,248 122,250

Profit before taxation 7,723,340 378,736

Taxation 2,586,246 327,923

Profit after taxation 5,137,094 706,659

Rupees Rupees

Earnings per share 93.76 12.9


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EQUITY AND LIABILITIES 2008 2007

EQUITY

Share Capital 1,715,190 1,715,190

Reserves 29,249,864 19,224,027

Total Equity 30,965,054 20,939,217

Liabilities

Non-Current Liabilities

Long term deposits 834,598 768,308Retirement and other servicebenefits

1,574,148 1,644,063

Total Non-Current Liabilities 2,408,746 2,412,371

Current Liabilities

Trade and other payables 81,067,565 41,431,075

Provisions 726,116 688,512

Accrued interest / mark-up 217,928 131,961

Short term borrowings 10,997,908 9,064,781

Taxes payable 726,703 69,398

Total Current Liabilities 93,736,220 51,385,727

Total Equity and Liabilities 127,110,020 74,737,315


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2008 2007

Sales 583,213,959 411,057,592

Sales Tax 74,249,472 52,418,310

Inland freight equalization margin 13,685,954 8,932,956

Net sales 495,278,533 349,706,326

Cost of products sold 465,254,907 337,446,896

Gross profit 30,023,626 12,259,430

Other operating income 1,396,527 1,278,932

Operating costs

Transportation costs 337,886 369,328

Distribution and marketing expenses 3,264,599 2,745,289

Administrative expenses 1,160,741 1,002,712

Depreciation 1,119,137 1,098,157

Amortization 47,689 41,908

Other operating expenses 3,352,969 755,420

Total Operating Cost 9,283,021 6,012,814

Other income 313,860 424,238

Profit from operations 22,450,992 7,949,786

Finance costs 1,367,898 1,158,112

21,083,094 6,791,674

Share of profit of associates 294,318 330,306

Profit before taxation 21,377,412 7,121,980

Taxation 7,323,617 2,432,182

Profit for the year 14,053,795 4,689,798

Rupees Rupees

Earnings per share 81.94 27.34

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Fundamental Analysis by Saleem