JS Co.’s net earnings decline by 53% on account of Rs7 bln increase in finance costs

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%

 

Copyright Mettis Link News

Posted on: 2019-03-20T15:02:00+05:00

26845