PACE reports profit of Rs165mn for 1HFY25

February 28, 2025 (MLN): Pace (Pakistan) Limited (PSX: PACE) has reported a significant turnaround in its financial performance, posting a profit after taxation of Rs165 million for the half-year ended December 31, 2024, compared to a loss of Rs22mn in the corresponding period of 2023.

The earnings per share (EPS) rose to Rs0.59 compared to a loss per share of Rs. 0.08 in the previous period.

The company’s improved profitability is attributed to higher revenue and lower costs of revenue, driving a substantial increase in gross profit.

Revenue for the period surged by 12% to Rs930mn, up from Rs881mn in the previous year.

Meanwhile, the cost of revenue declined by 7.6% to Rs566.5mn, further strengthening the company’s gross profit, which rose by an impressive 58% to Rs423.4mn.

However, administrative and selling expenses increased by 37% to Rs159.4mn, reflecting higher operational costs.

Despite this, PACE benefited from a significant rise in other income, which jumped 122% to Rs12.7mn.

Consequently, the company’s profit from operations stood at Rs276.7mn, an 82% increase compared to the Rs152mn reported in the previous period.

Finance costs remained relatively stable at Rs98mn, reflecting a marginal increase of 0.3%.

However, the company faced an exchange loss of Rs3.6mn on its foreign currency convertible bonds, compared to a gain of Rs92mn in the previous year.

Additionally, a Rs2.4mn gain from the change in fair value of investment property partially offset the impact.

After accounting for minimum tax expenses of Rs12.4mn, PACE posted a net profit of Rs165mn.