By: Elixir Securities Private Limited
Tariq Glass Industries Limited is expected to announce its 9MFY15 results on April 30, 2015. We expect the company to post EPS of PKR4.59 relative to LPS of PKR2.09 during the same period last year. 3QFY15 earnings are expected at PKR1.29/sh, significantly higher than the loss of PKR3.29/sh in 3QFY14 primarily due to lower energy costs and higher float glass prices.
Revising estimates on early furnace commissioning, delay in gas price hike and GIDC provisioning: TGL’s tableware furnace, which had been closed down for major re-build and expansion, will start commercial production from 1-May-15. Owing to early commissioning (~15 days), we have increased our EPS estimate for FY15 by PKR0.35/sh. In addition to this, we had remained conservative in our estimates and assumed that a gas tariff hike will be applicable from Apr-15. We extend our tariff hike assumption to Jul-15 and increase our FY15 EPS estimate by PKR0.71/sh. However, with the National Assembly likely to approve GIDC Act in May-15, we believe that TGL will have to provide for its outstanding GIDC payments in FY15. Owing to this, we have reduced our FY15 EPS estimate by PKR1.55.