TRG reports 46.5x increase in quarterly profits

November 6, 2020 (MLN): TRG Pakistan Limited has earned net profits of Rs 816.4 million during 1QFY21, which is 46.5 times higher than the profits of Rs 17.5 million reported in the same quarter of last year.

The earnings per share of the company also jumped from Rs 0.03 per share to Rs 1.50 per share.

The profitability of the company is mainly attributed to share of profits of Rs 917 million that the company earned from associates during the quarter, compared to zero profits reported last year.

During the quarter, company’s revenue broadly remained unchanged at Rs 59.5 billion, however, its administrative and other expenses went down significantly by 86.5% YoY, as a result, the company witnessed 2.3x surge in its operating profits from Rs 23 million to Rs 54.6 million.

On the tax front, the company incurred Tax expense amounting to Rs 155.3 million including deferred tax expense of Rs 138 million.

Moreover, as per the company’s quarterly report, the value of the Company’s share in TRGI as of September 30, 2020 is Rupees. 22.4 billion. This value was Rupees. 21.8 billion on June 30, 2020. This represents an increase of Rupees 0.6 billion during the period and an overall increase that is nearly ten times the value of its original investment.

As the company approaches monetization of its remaining assets, the management expects this value to increase further. In addition to the Company’s stake in TRGI, it also has other assets of Rupees 1.6 billion and liabilities of Rupees 4.1 billion resulting in net assets of Rupees 19.9 billion, the report added.

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