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TRG’s net losses extend notably by 63.35% on account of recurring cash operating costs

April 30, 2020 (MLN): TRG Pakistan Limited’s net losses for the nine-month period ended on March 31, 2020, has increased significantly by 63.35% YoY to Rs 493 billion, compared to the losses of Rs 3 billion in the corresponding period of last year.

The loss per share of the company rose from Rs 1.66 to Rs 1.83.

During the period, the revenues of the company reached Rs 70 billion representing a notable growth of 36.5% over the same period last year, aided by a weaker Rupee against the US Dollar.

Furthermore, the company’s recurring operating subsidiary revenues jumped to Rs 1.18 billion which were offset by net recurring cash operating costs (excluding interest) of Rupees 64,395 million, resulting in recurring earnings before interest, taxes, depreciation and amortization at the operating subsidiary level of Rupees 5,678 million.

According to the company’s quarterly report issued right after financial results, TRG’s operating subsidiaries incurred a net interest expense of Rupees 3,728 million to service their respective loans and lines of credit. Our total corporate overheads for the nine months were Rupees 377 million. In non-cash adjustments, the company had depreciation and amortization expenses of Rupees 4,293 million, stock option charge of Rupees 140 million and exchange loss of Rupees 117 million which helped in extending the company’s net losses.

In addition to this, the company incurred a non-cash interest expense of Rupees 1,617 million on account of preferred shares issued by the TRG’s subsidiaries and tax expense of Rupees 339 million further crumbled company’s income.

Consolidated Profit and Loss Account for the Nine months ended March 31, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Revenue

 70,073,240

 51,327,915

36.52%

Other operating income

 1,180,939

 368,911

220.11%

Payroll and related cost

 40,979,292

 30,469,929

34.49%

AI and development costs

 6,053,291

 3,612,893

67.55%

Acquisition expenses

 6,286,721

 4,432,506

41.83%

Depreciation, amortization and other non-cash costs

 4,550,286

 1,716,808

165.04%

Other operating costs

 12,634,067

 11,456,705

10.28%

Profit/(loss) from operations

 750,522

 7,985

9299.15%

Finance expenses

 (5,344,633)

 (2,816,468)

89.76%

Loss before taxation

 (4,594,111)

 (2,808,483)

63.58%

Income tax (expenses)/income

 (338,869)

 (211,370)

60.32%

Net loss for the period

 (4,932,980)

 (3,019,853)

63.35%

Basic and diluted loss per share – Rupees

 (1.83)

 (1.66)

10.24%

Copyright Mettis Link News

Posted on: 2020-04-30T12:26:00+05:00

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