Lahore: In a detailed overview of Grays Leasing Limited’s (GLL) financial performance for the fiscal year ending June 30, 2024, the company reported a marked improvement in its operating results, with total revenue reaching PKR 30.52 million, up from PKR 23.90 million in the previous year. The rise reflects a strategic emphasis on enhancing lease disbursements and efficient recoveries, leading to a profit after tax of PKR 7.76 million, compared to PKR 5.92 million in 2023.
During the year, GLL experienced significant activity in lease financing, with disbursements climbing to PKR 162.77 million, a notable increase from PKR 48.51 million in the prior year. This surge in disbursements, coupled with diligent recovery efforts totaling PKR 85.99 million, underscored the company’s robust operational execution. The company's gross investment in finance leases as of June 30, 2024, stood at PKR 496.85 million, maintaining a stable position compared to the previous year's PKR 496.56 million.
According to information available from the Pakistan Stock Exchange (PSX), the net investment in finance leases presented a slight decrease to PKR 419.33 million from PKR 424.51 million the previous year. However, the shift did not deter the positive trajectory in profitability. The financial resilience is further demonstrated by the shareholders’ equity, which saw an increase from PKR 63.10 million in 2023 to PKR 71.15 million in 2024.
Despite these gains, GLL did not declare a dividend for 2024, choosing instead to reinvest earnings to bolster equity, crucial for the company’s long-term financial health. This decision reflects a strategic stance to strengthen the firm’s balance sheet against future uncertainties.
The company’s forward-looking statements highlight a reliance on non-traditional funding sources, like internal cash generation and financial backing from Anwar Khawaja Industries, the holding company, due to a lack of significant commercial bank funding. The management remains optimistic about the company's trajectory, aiming to leverage improvements in vehicle value to potentially accelerate leasing activities in the upcoming years.
GLL's corporate governance practices and risk management policies are under continuous refinement, aligning with regulatory requirements and aiming for high standards of operational transparency and ethical conduct. The comprehensive approach to risk, especially in lease financing, underpins the company's commitment to maintaining a stable financial and operational footing.