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Saudi Pak Leasing Company posts 206% loss year-on-year

January 12, 2023

Qudsia Bano

Saudi Pak Leasing Company’s revenue from sales decreased 38% to Rs12.4 million in the first quarter of the ongoing financial year (1QFY23) compared to Rs19.9 million in the corresponding period of the previous fiscal. Similarly, the company sustained a huge operating loss of Rs8.3 million, or 306%, in 1QFY23 as against a profit of Rs4 million recorded in 1QFY22. The company also posted a net loss of Rs5.3 million in 1QFY23, down 206% from a profit of Rs5 million over the corresponding period of FY22, reports WealthPK. Adverse economic conditions resulted in these losses for the period under review.

The earnings per share of the company demonstrated mixed trends during recent years. The EPS stood at Rs0.60 in 2019, then decreased to Rs-1.18 in 2020. It then slightly increased in 2021 and dropped again in 2022. The market value per share of the company was very low during 2020 and 2021. However, it jumped to Rs50.00 in 2022. Similarly, the return on asset ratio also demonstrated a mix trend. In 2019, the ratio was 3.65, but then it turned negative in 2020 and 2022. The total assets net worth and total financing net worth ratio remained negative during recent years, showing that the company did not have profitable financing during these years.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales leapt to Rs20.8 million from Rs3.8 million in FY21, posting a massive increase of 446% year-on-year.   However, the firm suffered an operating loss of Rs26.5 million, up 473% from the loss of Rs4.6 million in FY21. The loss-after-tax for the year also went up by huge margins to Rs64.6 million from a net profit of Rs1.3 million in FY21.

About the company

Saudi Pak Leasing Company Limited was incorporated in Pakistan on January 8, 1991 under the now repealed Companies Ordinance, 1984. The main business activity of the company is the leasing of assets.

Credit : Independent News Pakistan-WealthPk