Leasing Companies: ORIX LEASING PAKISTAN LIMITED - Nine Months Ending March 31 2005

OLP was incorporated in Pakistan as a private limited company on July 1, 1986 and was converted into public limited company on December 23, 1987. Orix Leasing Pakistan Limited registered office and Head Office is located at Overseas Investors Chamber of Commerce Building Talpur Road, Karachi. This leasing company has relatively large network of 21 branches.
Its branches are situated in Karachi, Lahore, Faisalabad, Sialkot, Peshawar, Islamabad, Hyderabad, Multan, Sargodha, Sahiwal, Sukkur, Gujrat Gujranwala, Rahim Yar Khan, Rawalpindi, Abbottabad, Jhang, Kot Abdul Malik. OLP has eight marketing offices (Desks) at UBL's branches in Bahawalpur, Chakwal, Gilgit, Mingora, Mirpurkhas, Quetta, Sheikhupura.
OLP is listed on Karachi, Lahore and Islamabad Stock Exchanges. In the 21 Member Leasing Companies sector, the OLP share price was highest on 01-06-2000 the market value of the share closed at Rs 28.50 which is nearly three times of the par value. During the last one year rising stock market index the price of the share had peaked at Rs 41.75 per share. It seems that the present price has followed the stock market declining index during the recent months. The main business of the company is leasing of movable assets. During 9 months ended March 31, 2005 (9M 2004-05) the company's revenue from leasing business (both operating and finance lease amounted to 1.091 billion (9M 2003-04: Rs 998.50 million) which comprised 87.6% of the total income of the company. The year to date (9M 2004-05) lease disbursements reached Rs 7.35 billion (9M 2003-04: Rs 4.58 billion) registering impressive growth of 60.48% over the same period last year (SPLY).
It has been reported that higher business volume was due to increased demand for vehicles, plant and machinery and larger branch network and marketing offices. The portfolio of finance leases and instalment loans (before current maturities and allowance for potential lease and instalment loan losses) amounted to Rs 14.909 billion as compared to Rs 11.888 billion written in the SPLY made commendable increase of Rs 3.021 billion.
The company's total revenue at Rs 1.245 billion registered increase by 7.6% from Rs 1.156 billion in the SPLY.
Pretax profit was in the sum of Rs 256.56 million (SPLY: Rs 226.95 million) showing Rs 29.61 million increase. Financial charges were on the higher side because of rising interest rates as well as increase in quantum of borrowing. A portion of OLP's investment portfolio comprises its investment in the equities of Oman Orix Leasing, SAOG Orix Investment Bank Pakistan Ltd, Orix Leasing Egypt SAE, Saudi Orix Leasing Company, MAF Orix Finance PJSC.
The company has finalised its investment in a leasing company in Kazakhstan. With the take-over of Pakland Cement Ltd, Saadi Cement Ltd, by Dewan Group, The TFC's issued by these companies is being repaid.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                 March 31      June 30

                                     2005         2004

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Share Capital-Paid-up:             604.16       604.16

Reserves:                        1,286.04     1,241.90

Shareholders Equity:             1,890.20     1,846.06

L.T. Debts:                      4,714.93     4,151.52

L.T. Certificates of Investment    347.18       387.85

Deferred Liabilities:              261.97       274.88

L.T. Deposits:                   3,092.94     2,406.98

Current Liabilities:             6,174.37     4,168.96

Fixed Assets-Tangible:             632.37       659.16

Net Investments in Lease Finances

And Installment Loans:           8,638.45     6,500.84

L.T. Investments:                  499.41       504.29

L.T. Finances & Loans:              64.34        45.13

L.T. Deposits:                       8.75         7.37

Current Assets:                  6,638.27     5,519.47

Total Assets:                   16,481.59    13,236.26

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Profit & Loss A/c For Nine Months

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 March 31                            2005         2004

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Revenue From

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Finance Leases:                    855.58       831.94

Investment Loans:                   81.34        97.09

Operating Lease:                   234.94       166.56

Other Income Net:                   73.34        60.72

Gross Income:                    1,245.20     1,156.30

Total (Expenses & Provisions):   (988.64)     (929.36)

Profit Before Taxation:            256.56       226.95

Profit After Taxation:             229.16       201.21

Earnings Per Share (Rs):             3.79         3.33

Share Price (Rs) on 1-6-2005:       28.50            -

Price/Earning Ratio:                 7.52            -

Book Value Per Share (Rs):          31.29        30.56

Debt/Equity Ratio:                  71:69        69:31

Current Ratio:                       1.08         1.32

Lease Income/Total Income (%):      87.58        86.35

Net Profit/Total Income (%):        18.40        17.40

R.O.E. (%):                         12.12        10.89

R.O.A. (%):                          1.39         1.52

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