Saudi Pak Leasing Company Limited has shown remarkable growth in its financial performance for the year ended June 30, 2024, as compared to the previous year. The company posted a substantial increase in revenue and a strong rebound in profitability, indicating positive trends in its core business operations.
Key Financial Highlights:
- Revenue:
- Finance Leases: The company’s primary source of revenue, finance leases, surged to Rs. 154,002,805 in 2024, up from Rs. 32,437,564 in 2023, representing a significant increase.
- There was no reported revenue from operating leases in either 2024 or 2023.
The substantial growth in revenue highlights a notable expansion in the company’s leasing operations.
- Administrative and Operating Expenses:
- Administrative and operating expenses increased to Rs. 59,655,623 in 2024, up from Rs. 44,245,840 in 2023. While the rise in expenses is notable, it is consistent with the company’s expanding operations.
- Operating Profit:
- A key improvement can be seen in the operating profit, which turned positive in 2024, reaching Rs. 94,347,182, compared to a loss of Rs. 11,808,276 in 2023.
- This turnaround was supported by a reversal of provisions for non-performing exposures amounting to Rs. 49,462,417 in 2024, compared to Rs. 9,866,394 in 2023.
- Other Operating Income:
- The company reported other operating income of Rs. 32,522,390 in 2024, a decrease from Rs. 55,747,840 in 2023. This suggests a decline in non-core revenue streams, possibly due to market conditions or strategic shifts.
- Finance Costs:
- Finance costs remained high, reported at Rs. 47,402,879 in 2024, a slight increase from Rs. 45,460,128 in 2023, reflecting either increased borrowing or higher interest rates affecting the company’s debt servicing.
- Profit Before Tax:
- The company reported profit before tax of Rs. 128,929,110 in 2024, a remarkable jump compared to Rs. 8,345,830 in 2023. This shows the company’s strong recovery from a challenging prior year.
- Taxation:
- The company paid final taxes of Rs. 1,247,810 and minimum tax of Rs. 20,503,764 in 2024, resulting in a total tax expense of Rs. 21,751,574.
- Net Profit:
- After accounting for taxes, the net profit for the year stood at Rs. 107,177,536, a significant improvement from the profit of Rs. 14,581,379 in 2023.
Earnings Per Share:
- The company’s basic earnings per share (EPS) increased to Rs. 2.37 in 2024, compared to Rs. 0.32 in 2023.
- The diluted earnings per share also showed a positive trend, rising to Rs. 1.09 from Rs. 0.15.
Conclusion:
The financial results for Saudi Pak Leasing Company Limited indicate a strong recovery and growth trajectory, with major improvements in revenue, operating profit, and net profit. The substantial increase in earnings per share demonstrates the company’s strengthened position in the market. However, the rising administrative costs and finance costs are areas that may require closer attention in the coming years to ensure sustained profitability.
The turnaround in 2024, driven largely by an increase in finance leases and the reversal of non-performing provisions, places the company in a strong position for further growth and expansion in the leasing sector.
Source: PSX