Financial results: Despite speed bumps, Honda announces profits

The company sold about 12,783 units during the period against the sales of 8,541 units last year. PHOTO: FILE

KARACHI: 

Honda Atlas Cars has announced a profit-after-tax of Rs314 million or per share earnings of Rs2.20 for the six-month period ended September 2013, compared with a loss of Rs71 million and loss per share of Rs0.50 last year.

However, the company’s profitability dropped in the quarter ending on September 2014 owing to the rupee’s depreciation against dollar.

“The lacklustre performance of the company in quarter (July-September 2014) is mainly linked with the fast rupee depreciation, which depreciated almost 8% in the last two months,” Summit Capital analyst Sarfaraz Abbasi said.

The depreciating rupee has increased the import cost of car parts that the company imports for assembling.

According to the company’s management, the company has booked a heavy exchange rate loss under other operating expenses which has reached to Rs606 million in the quarter ended September 2013, up from Rs41 million last year, Abbasi added.

On quarterly basis, the company has posted a loss after tax (LAT) of Rs13 million for the quarter ended September 2013, or a loss per share (LPS) of Rs0.09, compared with a profit of Rs150 million last year, or LPS Rs1.05 per share.

Sales

During the six-month period ending September 2013, topline of the company showed a growth of 67% year on year to Rs21.37 billion against the sales of Rs12.79 billion last year due to prices and rise in volumetric sales.

The company sold about 12,783 units during the period against the sales of 8,541 units last year. The main reason behind the higher growth in volumetric sales was a low base impact as company’s operation remained suspended because of non-availability of the imported parts due to floods in Thailand, a summit capital report said on Tuesday. However, Honda Civic continued to attract consumers as sales increased by a massive 117% year on year to 5,884 units as compare to 2,715 units in same period last year.

On the quarterly basis, sales of the company were down by 4% to Rs10.47 billion against the sales of Rs10.91 billion in the previous quarter due to lower volumetric sales that were down by 3% to 6,304 units against the sales of 6,479 units in the previous quarter.

Quarterly sales remained down due to the seasonal impact as Pakistanis purchase fewer cars during and after the monsoon season, Abbasi added.

The increasing trend of cost-push inflation, especially the recent hike in fuel and electricity, prices is likely to impact the primary margins of the company adversely. The production cost will also witness a sharp rise due to costly imports as rupee depreciates.

Gwadar-Khunjrab Rail Link: Chinese conglomerate offers to build crucial rail link

“The main aim of the link is to connect the Central Asian Republics with the Pakistan Railways Network,” says Song Shuan Ping. PHOTO: FILE

KARACHI: A conglomerate of two leading Chinese construction companies, China Railway Engineering Corporation and Sinotec, has offered to construct the Gwadar-Khunjrab Rail Link at an estimated cost of Rs250 billion. This cost includes Rs160 billion for infrastructure and Rs90 billion for locomotives on electric traction. This investment is designed on a four-year, soft-loan term basis.

The offer was made to Minister for Railways Khwaja Sa’ad Rafique on behalf of the consortium in a detailed presentation carried out by Song Shuan Ping. The loan can be treated as a professional loan, commercial loan or a grant and will be payable in seven years.

Pointing out the strategic importance of Gwadar-Khunjrab Rail Link, Ping listed a number of benefits which could be availed once the project was operational. “The main aim of the link is to connect the Central Asian Republics with the Pakistan Railways Network,” said Ping. “This will immensely improve trade relations between China and Pakistan.”

Ping further pointed out that this rail link can be used to supply oil from the Persian Gulf to Pakistan. Additionally, this network will bring tourism in Pakistan and create employment in Balochistan.

While presenting their proposal, the representatives of the consortium suggested using electric traction as compared to the currently used diesel traction. They added that the use of electric traction will bring an added benefit of electricity on trains and railway stations. The team pointed out that electric traction has substantial benefits of approximately Rs32 billion per annum which included saving fuel cost, less staff required and elimination of power vans.

Rafique appreciated the offer by the Chinese companies. “Prime Minister Nawaz Sharif has highlighted the importance of the Gwader-Khunjrab Rail link several times,” said Rafique. “The offer will be given serious consideration and a decision will be reached soon.”

Mutual benefits: Pak-India trade can be enhanced to $25 billion

Trade between the neighbours should be maximised and the business communities should unite to work more closely with each other, said SGCCI India President. ILLUSTRATION: JAMAL KHURSHID.

KARACHI: 

President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) India, Kamlesh Yagnik, has said it is possible to enhance the existing $2 billion trade volume to $25 billion in the next 10 years through collective efforts of business communities of Pakistan and India.

“I am confident it can be achieved through collective efforts of the business communities and governments of both countries,” Yagnik said during a visit to the head office of the Karachi Chamber of Commerce and Industry (KCCI).

He added the two countries were doing trade through three channels – direct trade, circular trade and informal trade. The direct trade includes legal channels and other formal ways while circular trade involves Indian export products available in other countries which are imported by Pakistan.

He said the sizeable informal trade between Pakistan and India required serious attention from both governments as it affected those who traded legally and paid all taxes.

“Collective efforts must be made by the governments and business communities to reduce this informal trade, which, if addressed, will certainly pave the way for improved trade relations, besides ensuring substantial economic growth,” Yagnik said.

Trade between the neighbours should be maximised and the business communities should unite to work more closely with each other, he suggested.

Highlighting some obstacles to liberal trade, Yagnik assured the businessmen that his association would prepare an elaborate report and send it to the authorities in India for a review.

Commenting on India’s most-favoured nation (MFN) status, he said “it will help increase formal trade and result in taking the existing trade volume to new highs.”

He also suggested that instead of trading in dollars, a currency swap agreement should be signed by both governments that would prove favourable for them.

KCCI President Abdullah Zaki and SGCCI President Kamlesh Yagnik signed a memorandum of understanding (MoU) for strengthening cooperation between the two chambers.

Yagnik said the MoU would pave the way for solid relations between Karachi and Gujarat. Former KCCI president Siraj Kassam Teli said the Karachi Chamber had been trying and would continue to strive to improve trade relations between India and Pakistan.

“Instead of leaving the task to the governments and bureaucracies, the business communities of both countries must come forward and lead the way by enhancing trade and business relations,” said Teli.

“Enhanced trade with India will trigger competition in this region, resulting in further improvement in the quality of Pakistani products and services so that they could efficiently compete with their Indian counterparts,” he said.

Additionally, Pakistan would get an opportunity to penetrate the huge Indian market representing a population of 1.3 billion.

Commenting on India’s MFN status, Teli said it was high time to grant MFN status to India but unfortunately it was being delayed due to some bureaucratic hurdles on both sides.

KCCI President Zaki urged both governments to ease visa restrictions, improve roads and railway infrastructure, tackle issues of non-tariff barriers, set up investment and banking channels and open some crossing points for trade.

He said economic relations between the two countries were stabilising and growing at a faster pace but more needed to be done to build confidence.

Anonymous donor : ‘Friendly’ country offers $1b for Iran-Pakistan pipeline (Business)

Against the financing, Pakistan would award the engineering, procurement and construction contract to Tadbir Energy. DESIGN: TALHA AHMED KHAN

ISLAMABAD: 

A friendly country has offered $1 billion in assistance for building the Iran-Pakistan gas pipeline and the financing may be acquired after Tehran inks a nuclear deal with western powers, officials say.

Only top government leadership and the Foreign Office know about the financing offer, but the friendly country’s name has been kept secret.

According to sources, since the Iranian offer for financing and constructing Pakistan’s segment of the pipeline looks expensive, the government is exploring the possibility of going for this alternative financial assistance. Iran has offered $500 million for the project.

They said the present government also wanted to renegotiate with Tehran the agreed gas price and the pipeline construction contract for Iranian firm Tadbir Energy.

When the petroleum ministry’s spokesman was approached for comments on the assistance proposal, he said they had no idea of any offer from a friendly country.

However, officials privately suggest that China may be the country which has shown interest in financing the gas pipeline. Earlier, during the tenure of the previous government, China had offered a loan of $500 million.

A Chinese firm, which had offered the loan, later pulled out of the project after Pakistan refused to extend the bid validity period.

Owing to fierce opposition from the US, former petroleum minister Dr Asim Hussain had taken an initiative to arrange funds for the pipeline from two sources. He won government’s approval to generate $1 billion through the Gas Infrastructure Development Cess, but later a court stopped its collection. Apart from this, Hussain sought financing from Iran, which agreed to extend $500 million.

Pakistan and Iran also initialed an inter-governmental agreement for releasing the funds and awarding the construction contract to Tadbir Energy, which had been designated by Tehran.

“Now, the present government wants to renegotiate gas pricing and the contract with Tadbir Energy during upcoming visit of Petroleum Minister Shahid Khaqan Abbasi to Tehran,” an official said. He is going on an invitation from Iran.

“During the trip, the possibility of Iran providing the entire financing will be discussed,” the official added.

Against the financing, Pakistan would award the engineering, procurement and construction contract to Tadbir Energy.

According to a report prepared by the petroleum ministry, if furnace oil-based power generation is replaced with imported gas, it will result in annual savings of $2.4 billion.

The incremental impact of the gas pipeline would be just 20% on the overall average gas basket price if 750 million cubic feet per day (mmcfd) was imported, it said.

Under the project, which is estimated to cost around $1.8 billion, Pakistan will import 750 mmcfd of gas, extendable to one billion cubic feet. Balochistan wants 250 mmcfd for consumption at the Gwadar Port and it is likely that the central government may opt for higher gas imports to meet the needs of the province

Homage to Ronaldo

MIGUEL SERRANO 11/27/2013

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Ronaldo may not step out into the arena, but his name will rock the foundations of the Bernabéu. He might not be seen sprinting across the grass in typical fashion, but the fans will be behind him all the same. Real Madrid will have to do without Ronaldo on the pitch, but the 75,000 voices in the stands will make up for his absence.

With or without his trademark runs up the park, the fans will join together and chant the name of the best player to wear a Madrid shirt since Di Stéfano: Cristiano Ronaldo.

With the result of the FIFA Ballon d'Or thought to be a done deal, and Blatter public enemy number one in the eyes of Real Madrid fans, the match against Galatasaray will serve as a kind of tribute to Cristiano Ronaldo. He may not be there in body, but CR7 will be there in spirit.

Real Madrid has little to play for, having practically qualified for the next round of the Champions League. For this reason, Ancelotti can allow himself the luxury of giving his most illustrious foot soldier a well-deserved rest. It will be the first time this season the Portuguese star won't start an official match.

Xabi Alonso, the man who has turned Real Madrid around, will also bow out this time round. In contrast, Casillas will be back in goal.

It will be interesting to see how the as yet unseen midfield pairing of Illarramendi and Casemiro pans out. The Basque player has started to feel at home at Real Madrid and the pressure of playing in the Bernabéu has eased. Meanwhile, the Brazilian player showed in Almería that he has what it takes to make it at Real.

Obama Pardons a Pair of Thanksgiving Turkeys

Reuters

President Barack Obama, joined by daughters Sasha and Malia (R), pardons National Thanksgiving Turkey “Popcorn,” on the North Portico of the White House in Washington, Nov. 27, 2013. Chairman of the National Turkey Federation John Purkel looks on at left. (REUTERS/Larry Downing)

President Barack Obama pardoned two turkeys in the annual Thanksgiving pardoning ceremony Wednesday afternoon. He also declared Popcorn the National Thanksgiving Turkey, after Americans voted for their favorite turkey on the White House website.

“Popcorn is the winner, proving that even a turkey with a funny name can find a place in politics,” said Mr. Obama, flanked by his daughters Sasha and Malia. “As for Caramel, he’s sticking around, and he’s already busy raising money for his next campaign.” Caramel got another break: He didn’t participate in the White House ceremony.

Eighty turkeys competed for the honor of a presidential pardon. “It was, quite literally, the Hunger Games,” Mr. Obama said, saluting the turkeys for their bravery.

“The most powerful position in the world brings with it many awesome and solemn responsibilities. This is not one of them,” he quipped. But he called the pardoning ritual a “great tradition” and said his daughters love it.

The tradition of pardoning turkeys officially began in 1989 with President George H.W. Bush. Two decades earlier, in 1963, President John F. Kennedy returned the turkey to its farm, saying, “We’ll just let this one grow.

YOC’A X HSY: An ode to Jinnah: Get ready for fashionable furniture

Collaborative collection reflects the romance of the post-partition era and the history of our founder Mohammad Ali Jinnah’s life.

LAHORE: 

The love for our country has always been a unifying factor for people from all walks of life; be it the Yeh Hum Naheen campaign against terrorism or the Vibrant Pakistan fashion showcase at the Amsterdam Fashion Week. Now, for the first time, Pakistan will witness a rather unique collaboration that promises an accurate representation of Pakistan’s history. Couturier Hassan Sheheryar Yasin (HSY) and home décor experts, Sarah Najmi Bilgrami, Ahsan Najmi and Zayd Bilgrami, at YOC’A have joined hands to present a collection that, in all its intricacy, speaks volumes about the life of our nation’s founder Mohammad Ali Jinnah.

The Express Tribune sat down with the team at YOC’A and HSY himself for an exclusive tete-a-tete. “I have always wanted to do furniture but I never knew how to do it since my expertise lies in constructing clothes, not crafting furniture,” says HSY. “But when I was introduced to YOC’A, our visions were so in sync that we knew this collaboration had to happen.”

The exclusive limited edition collection is titled Unity Faith Discipline – A Retrospect, and comprises 48 pieces channelling the romance of Jinnah’s era. “It has a throwback feel to it and is entrenched in Pakistani history,” emphasises Bilgrami. “We have used old maps of Pakistani railway lines and postcards which Jinnah himself wrote, and emblazoned them on coffee tables and cushions.”

While the team at YOC’A is focusing on furniture design, HSY contributes his expertise in creative aesthetics through intricate embroideries and embellishments. Furniture enthusiasts can expect a veritable design museum of vintage furniture and home accessories reflecting the culture of the post-partition era. For the collection, YOC’A and HSY have created pieces of furniture for four different living spaces, with the aim of taking people down memory lane. One can say that this collaboration is a tale of two cities, combining the glamour of Lahore with the cosmopolitan nature of Karachi.

“It’s a ‘passion project’, not a fashion project,” says HSY. “These pieces are timeless and comfortable. They exude a very slick vibe and aren’t like your typical aunty furniture.” The design house has used thread embroideries on leather to give the pieces a unique feel. “We developed special motifs for this collection,” adds HSY.

The couture designer shares that it has been quite difficult for him to keep the exciting project under wraps for over a year. “I cannot keep anything to myself, but this was very important to me and it was something we wanted to be the first to do.”

The collection will be exhibited through an interior exhibition-installation from December 15 till December 17 at the HSY Studio in Lahore. Following that, it will be available for preview and order in Karachi later in the month.