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Arqaam Capital forecasts 16% increase for Elsewedy Electric’s gross profits by 2019 - Daily News Egypt

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Arqaam Capital forecasts 16% increase for Elsewedy Electric’s gross profits by 2019

Elsewedy Electric’s net profits increased by 99.2% in the second quarter of the fiscal year 2016 compared to the same period in the previous year


Arqaam Capital forecasts that Elsewedy Electric’s revenues will increase over the next five years in light of the expected further devaluation of the Egyptian pound.

The forecasted increase in revenues is due to various reasons. Elsewedy Electric’s major projects are priced in foreign currencies, and the company exports wires, cables, and electric products. The company also has major operations in Gulf countries and Africa.

Arqaam Capital predicts one off gains for the group between EGP 1.9bn and EGP 3.1bn in net receivables of hard currency as a result of the fast track project instalments the group is expected to receive.

Elsewedy Electric estimated gross profit in FY 2016 is estimated at EGP 4.721m and is expected to increase to EGP 5.050m in FY2017, reaching EGP 5.517m by 2019, which marks a 16% increase compared to gross profits in FY 2016.

On the other hand a decrease in net profits for the same period is forecasted, going down from EGP 4.167m in 2016 to EGP 2.740m by 2019, marking 35% decrease over the three-year period.

In the second quarter (Q2) of FY 2016, Elsewedy Electric group witnessed a solid revenue growth of 86%, 18%, and 14% in wires, cables, and meters segments, respectively, compared to the same period in FY 2015. The increase in revenue in the transformers segment was largely supported by growth in both the Egyptian and Algerian markets.

Consequently, the net profits for the second quarter of FY 2016 came at EGP 873m, marking a 99.2% increase in comparison with the same period in FY 2015, and a 15.3% increase compared to the first quarter of FY 2016.

 

 

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https://dailyfeed.dailynewsegypt.com/2016/10/27/arqaam-capital-forecasts-16-increase-elsewedy-electrica-gross-profits-2019/
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