Karachi: The Board of Directors of Arif Habib Corporation Limited (AHCL) has released its Directors' Review Report for the nine-month and quarter ended March 31, 2025, highlighting a robust financial performance amidst a backdrop of macroeconomic stabilization and policy continuity in Pakistan. The report, presented on March 31, 2025, outlines the company's progress and financial results during this period.
Pakistan's economy has shown signs of stabilization, supported by the International Monetary Fund (IMF) under the USD 7 billion Extended Fund Facility (EFF) and a new 28-month USD 1.3 billion arrangement under the Resilience and Sustainability Facility (RSF). Foreign exchange reserves reached USD 10.7 billion by March 2025, bolstered by record remittances of USD 28.0 billion. Inflation decreased to an average of 1.57% in the first quarter of 2025, compared to 24.03% in the corresponding period last year. The State Bank of Pakistan reduced the policy rate to 12%, and the Pakistani Rupee remained stable at PKR 280.16 against the US Dollar.
Domestically, the government aims to rationalize expenditure, advance privatization efforts, and encourage market-based pricing for petroleum and agricultural products, amidst a focus on export promotion to drive long-term growth.
On March 19, 2025, AHCL shareholders approved a share subdivision to enhance market liquidity and investor accessibility. This reduced the face value of each ordinary share from PKR 10 to PKR 1, increasing the number of issued shares from 421,696,747 to 4,216,967,470 without affecting the total paid-up capital or shareholders' rights.
Financially, AHCL reported a consolidated profit after tax attributable to equity holders of PKR 7,493 million for the nine-month period ended March 31, 2025, up from PKR 6,187 million (restated) in the same period last year. Earnings per share (EPS) increased to PKR 1.78 from PKR 1.47 (restated). On an unconsolidated basis, the company posted a profit after tax of PKR 18,251 million, a substantial increase from PKR 5,020 million in the previous period, resulting in an EPS of PKR 4.33 compared to PKR 1.19 (restated).
According to information available from the Pakistan Stock Exchange (PSX), group companies exhibited mixed performance during this period. Arif Habib Limited reported a profit after tax of PKR 755.87 million, up from PKR 441.24 million last year, supported by increased market activity. Javedan Corporation Limited's profit rose to PKR 1,786.83 million due to robust real estate demand. Power Cement Limited posted a profit of PKR 347.93 million, recovering from a loss in the previous period. Sachal Energy's profit stood at PKR 1,789.44 million, although lower than last year's PKR 2,237.12 million.
Fatima Fertilizer recorded a profit after tax of PKR 31,185.94 million, reflecting a strategy of diversification and a significant stake in National Resources (Private) Limited, which announced initial copper-gold discovery in Chagai, Balochistan. SafeMix Concrete Limited remained profitable with PKR 52.92 million in earnings, while Aisha Steel Mills Limited faced challenges due to price compression and sluggish demand.
The future outlook for AHCL remains positive, with declining inflation, easing interest rates, and improving macroeconomic stability expected to support business growth. The company is strategically focused on efficiency, growth, and value creation. AHCL anticipates sustained performance from the fertilizer and brokerage sectors, resilience in real estate and power, and improving prospects in cement and steel.
The Directors expressed gratitude to stakeholders, acknowledging the support of business partners, bankers, financial institutions, and regulatory bodies, and recognized the hard work of the company's employees.