Qudsia Bano

Sales revenue of Pace (Pakistan) Limited, a property developer, decreased by 1% to Rs61.2 million in the first quarter of the ongoing financial year 2022-23 (1QFY23) compared to Rs61.5 million over the corresponding period of the previous fiscal. The gross profit of the company also decreased by 6% to Rs43.8 million in 1QFY23 from Rs46.3 million recorded in 1QFY22.

Due to the weakening of the Pakistani rupee versus the US dollar, the company also suffered an exchange loss on a foreign currency convertible loan of Rs348.086 million. The total financing costs for the timeframe stood at Rs40.576 million. Due to these headwinds, the net loss for the period under review ballooned to Rs410.263 million from a net loss of Rs97.7 million in 1QFY22, showing a 320% negative growth year-over-year, reports WealthPK.

Performance in 2021-22

Due to a rise in inventory sales, the company's revenue rocketed to Rs1.2 billion in FY22 from Rs214 million in FY21. The company's other income for the year totalled Rs306.465 million as a result of the benefit from loan settlements. Due to a devaluation of the Pakistani rupee versus the US dollar, the company suffered an exchange loss on foreign currency convertible loans of Rs818.893 million.

Due to a change in the KIBOR rate, finance costs during the period increased from Rs134.289 million to Rs156.128 million. The net loss for the period rocketed to Rs618.439 million from a net loss of Rs46.322 million last year. This resulted in a loss per share (LPS) of Rs2.22 as opposed to an LPS of Rs0.17 in the previous year.

About the Company

Pace (Pakistan) Limited is a public limited company incorporated in Pakistan under the Companies Ordinance, 1984 (now the Companies Act, 2017), and is listed on Pakistan Stock Exchange. The company builds, acquires, manages, and sells condominiums, departmental stores, shopping plazas, supermarkets, utility stores, housing societies, plots, and other properties, and also carries out commercial, industrial and other related activities in and out of Pakistan.

Credit: Independent News Pakistan-WealthPk