Karachi: Jahangir Siddiqui and Co. Ltd. reported a net profit of PKR 205.65 million for the nine-month period ending September 30, 2024, reflecting changes in Pakistan's economic policies and market dynamics. The Pakistan Credit Rating Agency maintained a stable outlook on the company's long-term credit, reinforcing its strong risk absorption capacity amid a declining finance cost and overall reduced revenues.
According to information available from the Pakistan Stock Exchange (PSX), the company witnessed a significant shift in its financial landscape due to monetary policy adjustments by the State Bank of Pakistan (SBP), which reduced the policy rate by 450 basis points to 17.5 percent as of September 30, 2024. This adjustment was supported by better-than-expected reduction in inflationary pressures, influenced by fiscal consolidation measures and favorable global commodity prices. However, concerns remain regarding the near-term inflation outlook linked to the Federal Budget 2024-25 adjustments and potential hikes in energy prices.
The company's financial statements reveal a decrease in total revenues to PKR 872.23 million, primarily due to diminished dividend income and unrealized losses on equity securities. This decline was somewhat mitigated by a substantial reduction in finance costs, which dropped by 68.14 percent to PKR 33.51 million, following the repayment of outstanding Term Finance Certificates in the previous year.
Earnings per share (EPS) stood at PKR 0.22 basic and PKR 0.21 diluted, while the breakup value per share as of September 30, 2024, was reported at PKR 34.12. On a consolidated basis, the group recorded a net profit after tax of PKR 12.67 billion, marking a significant improvement from PKR 7.52 billion during the corresponding period last year.
Amidst this financial performance, the country's broader economic strategies were highlighted by the continuation of fiscal consolidation efforts. These measures were crucial for securing a USD 7.0 billion staff level agreement with the International Monetary Fund (IMF) for a 37-month Extended Fund Facility, which aims to stabilize Pakistan's fiscal situation by introducing new revenue measures and reducing development expenditures.
The positive outcomes of these policies are evident in the stabilization of foreign exchange reserves, which increased by USD 3.3 billion to USD 15.9 billion at the end of September 2024. This financial stabilization has allowed SBP to start reversing its tight monetary policy stance, setting a foundation for future economic stability and growth.