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Jahangir Siddiqui & Co posts a profit decline despite higher earnings

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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.

Profit and Loss Account for the half year ended June 30th 2018 ('000 Rupees)
  Jun-18 Jun-17 % Change
INCOME      
Return on investments  6,196,941  5,271,218 17.56%
Gain on sale of investments – net  104,465  721,751 -85.53%
Income from long-term loans and fund placements  8,639,349  4,148,134 108.27%
Fee, commission and brokerage  1,695,875  1,558,585 8.81%
Other income  532,766  287,674 85.20%
Gain/(loss) on remeasurement of investments through profit or loss – held for trading – net  40,207  40,156 0.13%
Total Income  17,209,603  12,027,518 43.09%
EXPENDITURE      
Administrative and othe expenses  5,783,523  4,398,351 31.49%
Finance cost  9,700,022  5,830,981 66.35%
Workers' Welfare Fund  36,579  35,327 3.54%
Provision for impairment on investments- net  (31,653)  4,543  
Total Expenditure  15,488,471  10,269,202 50.82%
Share of profit from associate  4,186    
PROFIT BEFORE TAXATION  1,725,318  1,758,316 -1.88%
Taxation  667,260  666,209 0.16%
PROFIT FOR THE PERIOD  1,058,058  1,092,107 -3.12%
Earnings per share – basic and diluted (Rupees)  0.95  1.01 -5.94%
Posted on: 2018-08-28T15:46:00+05:00

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