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Karachi: EFG Hermes Pakistan Limited has released its unaudited condensed interim financial statements for the first half of 2024, highlighting significant improvements in financial performance compared to the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company’s financial uplift was marked by an operating revenue of Rs. 141.90 million for the half year ended June 30, 2024, a notable increase from Rs. 110.50 million recorded during the same period in 2023. The firm also turned a profit before and after tax of Rs. 21.70 million and Rs. 13.90 million, respectively, reversing the losses witnessed in the prior year which totaled Rs. (53.43) million and Rs. (64.91) million.
This financial turnaround was primarily fueled by a robust performance in the second quarter, where operating revenues surged to Rs. 76.95 million from Rs. 69.84 million in the previous year. The period saw before and after tax profits of Rs. 15.90 million and Rs. 11.72 million, respectively, compared to significant losses in the second quarter of 2023.
Earnings per share for the half year stood at Rs. 0.69, a recovery from a loss per share of Rs. (3.24) during the same period last year. The quarter also saw a notable earnings per share of Rs. 0.59, contrasting sharply with a loss per share of Rs. (1.95) in the second quarter of 2023.
The company’s financial health was bolstered by a vibrant stock market, with the KSE100 index posting a 17% return during the second quarter of 2024. This favorable market condition was supported by increased activity from foreign institutional investors and a near 90% year-on-year increase in revenue from brokerage operations, totaling Rs. 117.9 million in the first half of 2024.
Administrative expenses remained controlled, aligning with the company’s strategic efforts to optimize costs. These expenses in the first half of 2024 were Rs. 112.3 million, showing a 3% reduction year-over-year. The financial charges were also lower due to the commencement of monetary easing in Pakistan.
Looking ahead, EFG Hermes anticipates further economic stability and growth, backed by the 37-month IMF programme which has received staff-level approval. The firm remains cautious, however, about geopolitical uncertainties and the challenges of advancing economic reforms.
In their concluding remarks, the board expressed gratitude for divine support and optimism for the future of the company and the nation.
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