PEL likely to show profit in second quarter

Pakistan Electron Limited (PEL) is likely to witness a turnaround in its financial growth in second quarter of the current year. PEL Managing Director, Haroon A. Khan revealed this while speaking at the corporate briefing programme at the Lahore Stock Exchange here on Tuesday. "We are optimistic about the company's future and will be in a position to show profit in the second quarter. However, it would be difficult to overcome the past losses" he said.
He said the projected sales for the year 2012 may stay at Rs 25338 million, ie Rs 15448 million from power distribution equipments and Rs 9890 million from the home appliances. Wapda is main buyer of power distribution equipment like transformers. Thus this segment of our production mainly depends upon the Wapda's financial position, he said.
Because of financial constraints, Wapda is currently purchasing transformers and other equipment for the maintenance purpose only whereas augmentation, expansion and electrification of villages programme can give huge boost to our sales, he maintained. Haroon A. Khan while dispelling the possibility of default on the part of buyers said the company's sale, particularly to the public sector departments, is secured through inland L/C under which banks are responsible for payment on behalf of buyers.
He said that engineering goods with US $3,699 billion (57 percent) is on top of the world trade list against the textile and clothing that has a share of US $371 billion (6 percent). Pakistan whose export mainly depends upon textile and clothing sector, has negligible share in engineering goods, he said and stressed the need for shifting focus from textile to engineering sector to get maximum advantage of the existing potential in this sector.
While answering to the questions, the Managing Director said the company is fully mechanised to meet the growing competition in engineering industry and we understand that PEL is a largest engineering industry in Pakistan at present. PEL is doing two types of businesses which include power division business and home appliances business. Refrigerator is a single largest product of the company which gives maximum revenue and currently its market share is 29 percent. In distribution transformer product PEL is a market leader which owns 42 percent share in the market, he added. PEL Chief Financial Officer Manzar Hassan also spoke on the occasion and apprised the participants about the company's performance. He said the company's sale has been increased from Rs 2442 million in 2001 to Rs 20,000 million in 2010.