Karachi: Pak-Gulf Leasing Company Limited (PGL) has managed to sustain its financial stability through prudent management and strategic asset allocation, despite the economic challenges faced during the fiscal year ending on June 30, 2024.
In a year marked by high Karachi Interbank Offered Rate (KIBOR) rates and volatile economic conditions, PGL's focus on well-established, creditworthy clients, and risk mitigation strategies played a crucial role in its operational resilience. According to information available from the Pakistan Stock Exchange (PSX), the company's financial statement revealed a modest profit after taxation amounting to 78.80 million rupees for the fiscal year, a 39.12% increase compared to the previous fiscal year's profit of 56.64 million rupees.
PGL's cautious approach to business, particularly in its leasing operations, resulted in a significant decline in new lease disbursements—down to 78 million rupees in FY 2023-24 from 267 million rupees in FY 2022-23. This strategic pullback reflects the company's response to the high KIBOR rates which have influenced borrowing costs across the board.
Despite these challenges, PGL demonstrated effective control over its operating costs and managed to increase its earnings per share from 1.14 rupees in FY 2022-23 to 1.59 rupees in FY 2023-24. The company's total assets saw a reduction from 2.53 billion rupees in the previous year to 1.95 billion rupees, aligning with a decrease in its lease and finance business.
The firm’s strategic emphasis on asset-based financing, with a diversified portfolio that includes machinery and equipment, vehicles, and other assets, has helped maintain a balance in its financial approach. The company also continues to prioritize risk management and regulatory compliance, ensuring that its governance practices meet the high standards set by the Pakistan Stock Exchange and other regulatory bodies.
As Pak-Gulf Leasing looks towards the future, it remains committed to adapting its business strategies to leverage emerging opportunities and navigate the economic uncertainties that lie ahead.