March 20, 2019 (MLN): Jahangir Siddiqui and Co. Limited has reported annual profits of Rs. 814 million (EPS: 0.7) for the year ended December 31, 2018, i.e. 53.45% lower than the profits of last year. The decline in net earnings was a result of a larger increase in company’s total expenses (35.75%) as compared to total income (26.88%).
The finance costs in particular caused most of the damage as they proliferated by 50%, i.e. around Rs. 7 billion. This was followed by administrative and other expenses which grew by 22%, i.e. Rs. 2 billion.
However, the company gained some respite from decline in taxation expense by 37.3%. One of the reasons for this decline was presence of deferred tax of around Rs. 90 million.
Profit and loss account for the year ended December 31 2018 (Rupees'000) | |||
|---|---|---|---|
| Dec-18 | Dec-17 | % Change |
Income |
|
|
|
Return on investments | 11,263,071 | 11,400,117 | -1.20% |
(Loss) / gain on sale of investments – net | -1,136,320 | 1,796,423 |
|
Income from long term loans and fund placements | 19,940,898 | 10,267,506 | 94.21% |
Fee, commission and brokerage | 3,322,029 | 2,845,878 | 16.73% |
(Loss) / gain on remeasurement of investments through profit or loss – held for trading – net | -72,246 | 18,130 |
|
Other income | 944,360 | 675,498 | 39.80% |
| 34,261,792 | 27,003,552 | 26.88% |
Expenditure |
|
|
|
Administrative and other expenses | 11,757,180 | 9,649,647 | 21.84% |
Finance cost | 21,362,121 | 14,198,100 | 50.46% |
Workers' Welfare Fund | -153,421 | 51,438 |
|
(Reversal of) / provision for impairment on investments – net | -220,511 | 223,031 |
|
| 32,745,369 | 24,122,216 | 35.75% |
Share of profit from associate | 6,674 |
|
|
Profit before taxation | 1,523,097 | 2,881,336 | -47.14% |
Taxation |
|
|
|
– Current | 771,795 | 900,033 | -14.25% |
– Prior | 26,945 | 196,063 | -86.26% |
– Deferred | -90,440 | 34,766 |
|
| 708,300 | 1,130,862 | -37.37% |
Profit for the year | 814,797 | 1,750,474 | -53.45% |
Earnings per share-Basic and diluted | 0.70 | 1.53 | -54.25% |
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