SME Leasing Limited Reports Significant Financial Loss for FY 2023

Karachi, SME Leasing Limited disclosed substantial losses in its financial results for the year ended December 31, 2023. According to information available from the Pakistan Stock Exchange (PSX), the company’s board convened on June 20, 2024, in Karachi, where it was confirmed that no dividends, bonus shares, or rights shares would be issued.

The company’s financial statements indicate a drastic increase in losses compared to the previous year. The operational revenue noted a significant drop from 20,997,856 Rupees in 2022 to 12,708,084 Rupees in 2023. The primary sources of income were from operations, which decreased notably from 20,870,846 Rupees to 11,402,094 Rupees, and other income which rose from 127,101 Rupees to 1,305,958 Rupees.

Expenses for the year totaled 78,707,453 Rupees, with administrative and general expenses amounting to 42,906,999 Rupees and finance costs at 5,800,454 Rupees. These figures represent a decrease in total expenses from the previous year’s 72,527,457 Rupees. However, the operational losses escalated from 51,529,601 Rupees in 2022 to 75,999,369 Rupees in 2023.

The company also reported negative adjustments related to potential lease losses and loans and receivables, further contributing to an operational deficit. The net loss before taxation stood at 69,207,078 Rupees, a severe downturn from the slight profit of 1,492,634 Rupees reported in 2022. After accounting for taxation, the net loss for the year was 69,349,604 Rupees, compared to a profit of 1,230,019 Rupees in the preceding year.

Earnings per share also reflected the downturn, with a loss of 2.17 Rupees per share compared to earnings of 0.04 Rupees per share in 2022.