Hifsa Raja

Revenues of Javedan Corporation Limited, the real estate developer, climbed 314% to Rs3.26 billion in the first nine months of the previous fiscal year 2021-22 (9MFY22) from Rs788 million over the corresponding period of fiscal year 2020-21. The gross profit, showing 180% growth, stood at Rs1.75 billion in 9MFY22 compared to Rs628 million over the same period of FY21.

The profit-before-tax rocketed to Rs1.57 billion in 9MFY22 from just Rs261 million in 9MFY21, registering a whopping increase of 501% year-on-year. Likewise, the profit-after-tax jumped to Rs1.38 billion in 9MFY22 from Rs186 million in 9MFY21, registering another massive increase of 645%.

Shareholding

As of June 30, 2021, directors, the chief executive officer, their spouses and minor children owned 0.79% of the total shares of the company. Associated companies, undertakings, and related parties owned 58.37% of the total shares. Banks, development financial institutions and non-banking financial institutions had 0.08% shares, mutual funds and modarabas 3.15%, the general public (local) 16.77%, (foreign) 0.04%, and others owned 10.18% of total shares, respectively.

Performance in FY21

During the fiscal year 2020-21, the company’s revenue dropped to Rs1.04 billion from Rs1.64 billion in 2019-20, registering a decrease of 36%.  The gross profit for FY21 stood at Rs782 million, down 16% from over Rs934 million in FY20.

The before-tax profit for FY21 fell to Rs370 million from Rs409 million in FY20, registering a decrease of 10%. However, the post-tax profit in FY21 increased to Rs331 million from Rs236 million in FY20, registering an increase of 40%.

Earnings Per Share

The earnings per share stood at Rs1.83 in 2019, but then dropped in 2020 to Rs0.75. In 2021, EPS was Rs0.87. It went up to Rs3.95 in 2022.

Profitability – profit before and after tax – remained high in 2017, but slightly pushed down in 2018. It then kept decreasing from 2019 to 2021. Javedan Corporation Limited was incorporated in Pakistan on June 8, 1961, as a public limited company under the Companies Act, 1913, which is now Companies Act, 2017.

The company ceased its cement business on July 1, 2010, and the management developed a business diversification strategy for utilising its 1,367 acres of land for developing a housing scheme with the name of “Naya Nazimabad” in Karachi, that includes bungalows, open plots, flat and commercial sites.

Credit : Independent News Pakistan-WealthPk