Jahangir Siddiqui & Co posts a profit decline despite higher earnings

Jahangir Siddiqui & Co. Ltd’s profit for the half year ended June 30, 2018 has declined by 3.12% over the year. The company reported a profit of Rs 1.058 billion compared to a profit of Rs 1.092 reported a year ago as at June 30, 2017.

According to the consolidated financial statements released by the firm on Tuesday, August 28, total income of the firm showed a remarkable growth of 43% of the year, while total expenses outpaced the income growth, witnessed an increase of 50.8% over the year.

All sources of income, including return on investments, income from long term loans, and that from fees, commission and brokerage deposited strong gains over the year, with the only exception being gains on the sale of investments.

On the expenses front, a significantly higher finance cost, coupled with larger administrative expenses incurred by the firm led to the outpacing of the growth in income.

As a result, the company’s profits before taxation fell by 1.88% while after tax profits similarly fell by 3.12%. Consequently, the company declared an EPS of Rs 0.95, a close to 6% decline in its EPS of Rs 1.01 declared a year ago as on June 30, 2017.