TRG Pakistan incurs a massive loss of Rs12.6bn during 1HFY22

March 01, 2021 (MLN): TRG Pakistan has unveiled its half-yearly results ended on December 31, 2021, whereby the company has suffered the net loss of Rs12.6 billion (LPS: Rs23.06) against the net profit of Rs4.4bn (EPS: Rs8.11), the company’s filling on PSX showed, mainly due to loss of Rs16.4bn from equity accounted investee.

Going by the financial statement, the company recognized interest income of Rs7.1 million, showing a decline of 91% YoY, whereas it incurred expenses of Rs16.8mn during 1HFY22. Resultantly, the company incurred an operating loss of Rs9.6mn as opposed to an operating profit of Rs56mn recorded in 1HFY21.

The income statement is primarily driven by the changes in the value of its share in Resource Group International Limited (TRGIL). The share of the net loss in equity accounted investee i.e., TRGIL was Rs14.8bn. Out of this loss from the associate, Rs6.8bn was on account of a mark-to-market loss booked on IBEX shares held by TRGIL, according to the official document sent to the exchange.

Notably, the positive highlight is that the company booked a gain of Rs1.7bn from dilution gain on equity-accounted investee and the deferred tax amounting to Rs2.2 billion came as a breather in the bottom line, however, these gains failed to counterbalance the loss incurred from equity accounted investee.

Meanwhile, TRG Pakistan witnessed a gain of Rs4.5bn on the effect of transaction impact of net investment in foreign associate.

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