Qudsia Bano

Jahangir Siddiqui & Co Limited’s return on investment increased 5% to Rs1.1 billion in the first nine months of the calendar year 2022 (9MCY22) compared with Rs968 million over the corresponding period of the previous year. Similarly, the income from long-term loans and fund replacements of the company registered an increase of 64% and stood at Rs84.7 million against Rs51.9 million last year. The company posted a net income of Rs1.1 billion in 9MCY22 compared to a profit of Rs1.3 billion over the corresponding period of CY21, showing a negative growth of 15% year-on-year, reports WealthPK.

Performance in 2021

During the calendar year 2021, the company maintained a strong sales trend, generating revenue of Rs1.5 billion over Rs956.5 million in CY20, posting an increase of 58% year-on-year.   However, the gross profit for CY21 stood at Rs1.1 billion, 45% down from a profit of Rs2.2 billion in CY20. The profit-after-taxation for the year also plunged to Rs786 million, 35% down from Rs1.2 billion in CY20.

During CY21, the shareholders' equity increased by 5.81% to Rs1.74 billion. Growth in shareholders' equity is reliant on quoted prices for these securities because a sizable amount of shareholders' equity is invested in quoted long-term investments. The level of leverage used by the company is rather little. Total debt has decreased by Rs1.19 billion from CY2018. In 2021, the total debt-to-equity ratio was 0.12:1.

Together with its subsidiaries, Jahangir Siddiqui & Co conducts business as an investment firm in Pakistan, Bahrain, and the Cayman Islands. It operates business through the segments of banking, energy infrastructure and petroleum, investment adviser/asset manager, capital market, brokerage, and others. The trading of equity securities, management of strategic and trading portfolios, share, money market, forex, and commodity brokerage activities, as well as the provision of advisory, underwriting, book running, and consultancy services, are the main activities of the capital market and brokerage segment.

The banking segment offers commercial and investment banking services. The investment adviser/assets manager division provides asset management and investment advice services to a variety of unit trusts and mutual funds. Petroleum and energy infrastructure participate in the oil marketing industry and store LPG and petroleum.

Credit : Independent News Pakistan-WealthPk