Karachi: TRG Pakistan Limited has presented its financial results for the first quarter ending September 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the company saw key strategic developments, particularly through its portfolio company Ibex Limited and its AI Software Business, leading to financial restructuring and expected continued growth.
During the quarter, Ibex has significantly enhanced its technological capabilities and operational efficiencies. It established partnerships with various technology providers to bolster its automation and generative AI solutions, securing new contracts with both existing and new clients. Ibex is also expanding its operations in Central America and Asia, leveraging a strong balance sheet to make structural improvements and accelerate new business wins.
Simultaneously, TRG Pakistan’s indirect AI Software Business announced a major financial restructuring plan with its senior lenders in September 2024. This agreement will transfer majority ownership to these lenders, with other stakeholders including The Resource Group International Limited and the management team retaining shares. This restructuring, aimed at addressing debt maturity and high leverage incurred between 2019 and 2021, is on track to complete by year-end following a Bermuda court process. This will result in the formation of a new holding company in the United States, retaining the company’s indirect stake in the business on a fully diluted basis.
Financially, TRG Pakistan reported a net profit of Rupees 2.4 billion for the period, with earnings per share standing at Rupees 4.4. The value of the company’s share in TRGIL, its sole operating asset, increased by Rupees 2.9 billion to Rupees 43.4 billion as of September 30, 2024, primarily driven by a mark-to-market gain on Ibex shares. The company also recorded interest income of Rupees 0.5 million and incurred expenses of Rupees 135.7 million. Deferred taxes led to a tax liability of Rupees 450 million for the quarter.
Looking ahead, TRG Pakistan remains committed to enhancing the value of its portfolio assets and strategically monetizing them to maximize returns and liquidity for its shareholders. The directors expressed gratitude towards the shareholders for their ongoing trust and support in the company’s endeavors.