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.
| Condensed interim consolidated statement of profit and loss (unaudited) for the half year ended December 31, 2024 (in Rupees '000) | 2024 | 2023 | %Change |
| Revenue | 989,891 | 881,333 | 12.32% |
| Cost of Revenue | (566,506) | (613,091) | -7.60% |
| Gross Profit | 423,385 | 268,242 | 57.84% |
| Administrative and selling expenses | (159,381) | (116,547) | 36.75% |
| Other income | 12,693 | 5,716 | 122.06% |
| Profit/(Loss) from operations | 276,698 | 152,220 | 81.78% |
| Finance cost | (97,924) | (97,603) | 0.33% |
| Exchange (loss)/gain on foreign currency convertible bonds | (3,660) | 91,830 | |
| Loss from change in fair value of investment property | 2,421 | (10,805) | |
| Profit/(Loss) before income tax and minimum taxes | 177,535 | (10,759) | |
| Minimum Tax | (12,374) | (11,017) | 12.32% |
| Profit/(Loss) after taxation | 165,161 | (21,776) | |
| Loss per share – basic and diluted | 0.59 | (0.08) |
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Posted on: 2025-02-28T11:39:06+05:00
