Hifsa Raja

Pakistan International Container Terminal Limited’s (PICT) revenue inched up 7% to Rs8.8 billion in the first nine months of the calendar year 2022 from Rs8.3 billion over the same period of the year before. The company had one per cent loss in its gross profit, which pushed down to Rs3.7 billion in 9MCY22 from Rs3.8 billion in the corresponding period of the year ago.

The profit-before-taxation, however, saw a big jump of 190% in 9MCY22 and reached Rs3.5 billion compared to Rs1.2 billion in the corresponding period of CY21. But, the profit-after-taxation fell by 14% to Rs2.2 billion in 9MCY22 from Rs2.5 billion over the corresponding period of CY21, reports WealthPK.

Global economic challenges continued to be reflected in high international commodity prices due to the Covid-19 pandemic and the changes in the global geopolitical environment. The economic impacts of the global crisis on Pakistan have been exacerbated by foreign exchange constraints, increases in interest rates to tame inflation, significant devaluation of the rupee and other fiscal measures.

Moreover, as per the World Bank’s report, the cataclysmic floods in Pakistan caused economic damage on a massive scale to the country’s already teetering economy. The floods damaged crops and caused a dip in food exports. Imports also contracted due to pressure on foreign exchange.

Consequently, Pakistan container market volumes witnessed a considerable decline during the nine months period that ended on September 30, 2022. It is to mention here that the company handled 286,608 containers during 9MCY22 compared to 367,302 containers in 9MCY21. While excess capacity available at Karachi Port is a challenge for the company, it is being mitigated through various commercial and operational strategies backed up by continued quality services.

The company remains determined to provide enduring value to all its stakeholders and has continually endeavoured to retain sustainable market share.

Earnings Growth Analysis

PICT stock price has shown significant growth over the past few years. Earnings per share was Rs24.48 in 2020, which further increased to Rs31.05 in 2021. Earnings growth was also on the higher side in 2020 and 2021.

Profitability

In relation to its revenue, Pakistan International Container Terminal Ltd has had a healthy net profit margin over the past four years. Despite hefty taxes and service costs, the business maintained strong profit margins. The year 2021 had the greatest net profit margin of Rs30.54%.

Company Profile

Pakistan International Container Terminal was incorporated as a private limited company. It is mainly engaged in providing container terminal management services. It has a Build-Operate-Transfer contract with Karachi Port Trust for the exclusive construction, development, operations and management of a common user container terminal at Karachi Port for a period of 21 years, commencing June 18, 2002. The company is a subsidiary of ICTSI Mauritius Limited, whereas its ultimate parent company is International Container Terminal Services Inc.

Credit: Independent News Pakistan-WealthPk