Karachi: Orient Rental Modaraba, managed by EMAN Management (Pvt.) Limited, has reported a significant increase in profit and revenue for the first quarter of the fiscal year 2025, according to its recently published unaudited condensed interim financial statements for the quarter ending September 30, 2024.
In the reported quarter, the company's revenue reached Rs. 588.49 million, a 21.3% increase from Rs. 484.97 million in the same quarter of the previous year. This rise was primarily driven by increased generator deployment due to improved gas supplies, particularly in the Punjab region, and new contracts and price adjustments in the operation and maintenance division.
Operating expenses also rose to Rs. 437.02 million, up 23.8% compared to Rs. 352.79 million in the corresponding quarter of the previous year, aligning with the increased generator deployment and operational costs. However, administrative and marketing expenses decreased by 8.8% to Rs. 15.83 million due to stringent cost controls amid single-digit inflation.
Other income, primarily from deposits with banks, totaled Rs. 5.62 million, reflecting lower fund placements. The company managed a slight reduction in finance costs, from Rs. 33.80 million to Rs. 31.85 million, attributed to declining interest rates.
According to information available from the Pakistan Stock Exchange (PSX), the profit before taxation stood at Rs. 94.89 million, up 12% from Rs. 84.41 million in the same quarter last year. After accounting for levies and taxes totaling Rs. 44.55 million, the profit after taxation was Rs. 50.34 million, representing a 7.4% increase from Rs. 46.87 million in the previous year's quarter. The earnings per certificate increased to Rs. 0.67 from Rs. 0.62.
Looking ahead, the company anticipates further economic improvements, with the State Bank of Pakistan (SBP) projecting GDP growth between 2.5% to 3.5% for FY 2025. The lowering of policy rates by the SBP is expected to reduce borrowing costs over the next three quarters, while the inflation rate has already dropped to a single-digit figure of 6.9%, the lowest since January 2021.
However, potential disruptions in gas supplies could affect revenue growth, as a significant portion of it is generated from gas generator rentals. The company plans to mitigate this risk by diversifying into new business segments and continuing to expand its operation and maintenance division.
The Board expressed its gratitude towards the Securities and Exchange Commission of Pakistan, Registrar Modaraba, and the Pakistan Stock Exchange for their support and guidance, and acknowledged the trust placed by its certificate holders and the dedication of its employees.