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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