The Siemens Pakistan has almost finalised the deal with Pak Elektron Limited (PEL) for the sale of its transformers business, according to industry sources. Sources revealed that all the matters in this regard have been finalised between the two companies while some formalities and legal requirements are still in progress. Formal declaration of this agreement in this regard will be announced soon.
Other details of the deal are still to be revealed thus any beneficial impact on the PEL bottom-line from the expected deal with Siemens can only be calculated once the particulars of the deal are revealed, said the source.
Moreover, as per 2012 accounts of Siemens, company’s energy sector contributed approximately 56 percent to the total revenues while transformer segment contributing about 25 percent, which was recorded at Rs 13,834 million while company’s total gross margins were significantly down to 6.6 percent in 2012 against 11.1 percent last year. The profit from the energy sector stood at Rs 764 million, against total company loss after tax of Rs 5.15 million with loss per share (LPS) Rs 0.62.
On the other hand, according to the financial results of PEL for CY12, released on Wednesday, PEL recorded profit-after-tax (PAT) of 113 million with the earning per share (EPS) Rs 0.59 in CY12, a bounce-back in profitability from LAT of 1,163 million with the LPS Rs 9.90 in CY11.
The company’s transformer business segment contributed about 35 percent to the overall company revenues while the segment contributed 33 percent to the total loss before tax of the company last year. As per 9MCY12 accounts (available detailed accounts), PEL’s core book value (excluding revaluation surplus of Rs 31.3/share) stood at Rs 31.23 per share.
As per PEL’s latest full-year results, gross margins of the company have also significantly improved to 20 percent in CY12, from only 9.4 percent recorded last year. As of 9MCY12, PEL has a total asset base of Rs 24,063. However, any beneficial impact on the PEL bottom-line from the expected deal with Siemens can only be calculated once the particulars of the deal are revealed.
Source: Daily Times
