<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pakgen Power Limited (PKGP) profitability clocked in at
Rs1,091 mn (EPS Rs2.9), up 69% YoY, in 1QCY20.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We attribute rise in profitability to (1) higher dollar
indexation, (2) higher spread on interest received on delayed payments and paid
on borrowing and (3) lower generation.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">During 1QCY20, tariff dollar indexation applicable for the
company went up by 11% YoY.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Higher dollar indexation results in improved profitability
of the company by ~Rs0.8/share, as per the management.</span></li></ul>
