Shams ul Nisa

Jahangir Siddiqui & Company Limited's (JSCL) net profitability rose remarkably by 166.3% to Rs470.04 million in the first half of the Calendar Year 2023 compared to Rs176.49 million in the same period last year, reports WealthPK. The investment company reported a rise in income by 41.1% to Rs1.15 billion in 1HCY23 from Rs820.09 million in 1HCY22. This hike in revenue is attributed to the dividend income and capital gains earned from investments during the period under review.

JSCL expenditures tumbled from Rs281.3 million in 1HCY22 to Rs269.4 million in 1HCY23, showing a decline of 4.23%. This decline in expenditure indicated that the company had efficiently followed cost-saving policies during the period. The profit before tax went up by 64.77% clocking in at Rs887.7 million as compared to Rs538.7 million in the same period last year. Moreover, the company's earnings per share (ESP) showed an upward trend, reaching Rs0.46 in 1HCY23 compared to Rs0.18 in 1HCY22. This indicates that the company's profitability per share has increased over the period, which is an essential indicator to attract investors for its shareholders.

Quarterly analysis

The company performed much better in the second quarter of the fiscal year 2023 than in the same period last year. The total income during the 2QCY23 soared to Rs540.8 million, 111.5% higher than Rs255.6 million in 2QCY22. The total expenditure fell to Rs123.9 million in 2QCY23 from Rs131.9 million in the same period last year, posting a decline of 6.08%.

The investment company recorded a tremendous growth of Rs236.97% in profit before tax, clocking in at Rs416.89 million in 2QCY23 as compared to Rs123.7 million in 2QCY22. Similarly, profitability rose by 564.2%, clocking in after-tax profit at Rs116.19 million in 2QCY23, as compared to an after-tax loss of Rs24.5 million in the same period last year. The company's ESP improved to 0.12 in 2QCY23 from negative 0.02 in 2QCY22.

Financials analysis

Over the years, the company witnessed a mixed trend, as the total income fell from Rs1.22 billion in 2019 to Rs956.5 million in 2020. However, the company recorded the highest total income of Rs1.5 billion in 2021, which was reduced to Rs1.38 billion in 2022.

The investment company observed the highest profit after tax of Rs1.2 billion in 2020 and the lowest of Rs345.2 million in 2022. Similarly, the earnings per share of the company have shown fluctuating trends. In 2020, the company recorded the highest ESP of Rs1.32 and the lowest of Rs0.38 in 2022.

Ratios analysis

The company observed a substantial rise in net profit margin from 29.49% in 2019 to 125.97% in 2020, which plunged to 52.18% in 2021, and further to 24.94% in 2022. This shows that the company's profitability over the period is affected by both positive and negative factors.

Overall, the ESP in 2022 fell to the lowest negative 55.81% from 69.57% in 2019. The company recorded the strongest ESP of 238.46% in 2020. Likewise, the price/earnings to growth ratio followed a mixed trend and recorded positive PEG of 0.42 and 0.1 in 2019 and 2020. The negative PEG of 0.53 and 0.48 was recorded in 2021 and 2022.

Company's profile

Jahangir Siddiqui & Co. Ltd. was established on May 04, 1991, as a public company. Its core activities are managing strategic investments in financial services, trading of securities, and consultancy services. Long-term investments in transports and communications and financial services include investment in commercial banking, Islamic banking, asset management, securities brokerage, consumer credit rating agencies, and micro-finance.

Credit: INP-WealthPk