Leasing Companies: PAK-GULF LEASING COMPANY LIMITED - Nine Months Ended March 31, 2004
This leasing company of Clifton Karachi also maintains robust financial backbone as evident from the current ratio and debt to equity ratio. Despite continued less than conducive business environment Pak-Gulf Leasing Company is steadily but slowly improving both its gross revenue and net profit.
In 1Q 2003-04, it posted net profit at Rs 3.86 million, followed by 2Q 2003-04 net profit at Rs 4.50 million and in 3Q 2003-04, the net profit slightly rose to Rs 4.86 million.
For the combined three quarters of the year 2003-04, the company posted net profit after taxation at Rs 13.12 million which is 25.19% higher over Rs 10.48 million in the same period last year.
The 9M of 2003-04 has been quite significant for this company:
First, there was upward revision of the company's credit rating to BBB+ for medium to long-term and A-2 (Single 'A' minus two) for the short-term.
Second, the company launched its certificate of investment to optimise cost.
Third, in the area of increasing flexibility a far reaching effort was done by negotiating fresh lines of credit for Rs 130 million.
Obviously the outcome of these efforts will provide advantage to lessees which is its strategy of growth in business.
In the macro-economic scenario the banks are slowly pushing up the lending rates as central banks, the world-over seen now convinced that the recession has bottomed out. But the leasing companies, have to still confront this situation as borrowers.
On the other hand lessees would resist the escalation in IRR (Implicit Rate of Return). If that be the case than will be it commendable attempt if the fresh credit lines for Rs 130 million has been negotiated in good terms & rates.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2004 2003
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Share Capital-Paid-up: 170.00 170.00
Reserves & Profit: 46.43 33.31
Shareholders Equity: 216.43 203.31
L.T Debts: 46.42 5.51
L.T Deposits: 101.69 70.56
Deferred Taxation: 8.87 7.37
Current Liabilities: 133.01 79.02
Tangible Fixed Assets: 14.27 15.16
L.T Loans & Deposits: 1.73 0.98
Net Investments in Lease Finance: 305.36 218.20
Investments: 7.33 5.58
Deferred Cost: 14.30 17.45
Current Assets: 163.43 108.40
Total Assets: 506.42 365.77
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Profit & Loss A/c
For Nine Months Ended March 31 2004 2003
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Revenues
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Lease Income: 32.05 26.25
Profit From Bank Accounts/
Return on Investments: 0.73 0.22
Other Income: 0.87 1.24
Gross Revenue: 33.65 27.71
Total (Expenditure & Provisions): (18.58) (15.72)
Profit Before Taxation: 15.07 11.94
Profit After Taxation: 13.12 10.48
Earnings Per Share (Rs): 0.77 0.62
Share Price (Rs) on 24.06.2004: 7.50 -
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Financial Ratios
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Price/Earning Ratio: 9.74 -
Book Value Per Share (Rs): 12.73 11.96
Debt/Equity Ratio: 18:82 3:97
Current Ratio: 1.23 1.37
Lease Income/Total Profit(%): 95.25 94.73
Net Profit/Total Income (%): 38.99 37.82
R.O.E: 6.06 5.15
R.O.A (%): 2.59 2.87
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COMPANY INFORMATION: Chairman: Sohail Inam Ellahi; Vice Chairman: Fawad S Malik; Managing Director & Chief Executive Officer; A.B. Shahid; Company Secretary: S. Azfar Ali Baqvi; Registered Office & The Forum: Room No 125-127, First Floor, G-20, Block 9, PO Box No 12215 Main Khayaban-e-Jami, Clifton Karachi-75600
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