TRG Pakistan Made 2400% Higher Profit in First Half of FY21 - Pakistan News Digest - Pakistan News Digest

TRG Pakistan Made 2400% Higher Profit in First Half of FY21 - Pakistan News Digest

TRG Pakistan Made 2400% Higher Profit in First Half of FY21

TRG Pakistan made a windfall profit of Rs. 4.4 billion during the first half of the financial year 2020-21 by cashing in on emerging business opportunities in the global market.

According to the financial results, the IT giant has had tremendous year-on-year growth with a profitability surge to over 24 times the profit of Rs. 18.5 million recorded in the corresponding period of the last financial year. The earnings per share of the company have surged to 8.1 from 0.34.

However, despite better than expected profitability, TRG Pakistan’s board of directors has not announced any dividends for its shareholders.

TRG Pakistan has won various business deals in Pakistan that are mainly related to Business Process Outsourcing from various foreign markets.

The value of its share in TRGI as of 31 December 2020 had stood at Rs. 25.7 billion from Rs. 21.8 billion on 30 June 2020, representing an increase of Rs. 3.9 billion during the period and an overall increase that is nearly seven times the value of its original investment.

As the company approaches the monetization of the remaining assets, it is expected that this value will increase. It also has other assets of Rs. 1.7 billion and liabilities of Rs 4.6 billion, resulting in net assets of Rs. 22.8 billion in addition to its stake in TRGI.

The company recognized a stand-alone income of Rs. 81.6 million in its income statement, whereas it had incurred expenses of Rs. 25.3 million. Additionally, its share of profit from its associates had stood at Rs. 5.158 billion.

Tax expense amounting to Rs. 790 million, mainly on account of deferred tax, had also been incurred during the period. Consequently, the company had posted a net profit of Rs. 4.425 billion for the period that had ended on 31 December 2020.

The results of the Portfolio Companies under TRG International Limited (Associated Company) TRGI and its portfolio companies have continued their growth trajectory during the first half of FY21.

The industry has seen a recent tightening of margins which has impacted per unit economics. However, the company continues on a strong growth trajectory which its management expects to accelerate more in 2021.

 

Source: Propakistani

 

   

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