The Bell About Remittances Sent by Overseas- Elixir Securities Limited

Karachi -- 1HFY11 EPS up 42% YoY, DPS at PKR3/share: KAPCO posted PAT of PKR3.85bn (EPS: PKR4.37), up 41.7% YoY with interim dividend of PKR3.0/share for 1HFY11. 2QFY11 earnings stood at PKR1.81bn (EPS: PKR2.06), up 31% YoY. According to Elixir Securities Limited, Indexation factor up 2.4% HoH driving growth in CPP: CPP (capacity purchase price) was up 1.7% HoH during 1HFY11, despite an increase of 2.4% in indexation factor HoH, due to decline in non-escalable component of CPP. Going forward, Elixir Securities Limited expects CPP to rise by a mere 1% HoH for 2HFY11, driven by 1.7% HoH increase in indexation factor. Indexation factor increase is expected due to PKR depreciation of 1.20% and US CPI growth of 0.48% during 1HFY11 (applicable for 2HFY11 revenues).