Karachi: Saudi Pak Leasing Company Limited reported a notable financial turnaround for the fiscal year ending June 30, 2024, showcasing a significant increase in profitability despite a decline in total assets. According to the company's recent Corporate Briefing Session, the firm achieved a profit after tax of 107.18 million Pakistani Rupees (PKR), a remarkable increase from the 14.58 million PKR recorded in the previous year, marking a 635.03% improvement.

The financial results revealed a significant increase in revenue from finance leases, which surged by 374.77% to 154.00 million PKR, compared to 32.44 million PKR in the prior year. This growth in revenue was further bolstered by a reversal of provisions for non-performing exposures, which amounted to 49.46 million PKR, up from 9.87 million PKR, contributing to a substantial operating income of 143.81 million PKR.

Despite these positive earnings, the balance sheet painted a contrasting picture. Total assets decreased by 9.48%, standing at 734.61 million PKR compared to 811.58 million PKR in the previous year. The company also reported a decline in current assets, which fell by 11% to 617.54 million PKR. Additionally, non-current assets saw a slight reduction of 0.49% to 117.07 million PKR.

According to information available from the Pakistan Stock Exchange (PSX), the company's total liabilities also decreased by 13.45% to 1,194.35 million PKR, reflecting a reduction in borrowings from financial institutions and accrued mark-up. However, the net assets position remained negative at -459.74 million PKR, although showing an improvement from the -568.43 million PKR recorded previously.

The cash flow statement highlighted a positive trend, with net cash from operating activities increasing to 127.86 million PKR, driven by higher finance lease rentals received. However, cash flows from financing activities remained negative, reflecting repayments of long-term finances and certificates of investment, leading to a decrease in cash and cash equivalents at the end of the year.

Key performance indicators (KPIs) indicated an improved return on assets of 14.59%, up from 1.80% the previous year. However, the company's current ratio remained low at 0.52, and the debt-to-assets ratio increased slightly to 0.96.

As Saudi Pak Leasing navigates these financial dynamics, the company's focus on enhancing profitability through increased revenue generation and cost management appears to be yielding positive results, despite the challenges posed by the declining asset base.