Pakistan Stock Exchange Analyst Briefing - Financial Results FY 2019-20
Financial results for the Pakistan Stock Exchange for the year ended June 30, 2020, show a mixed performance with certain revenue increases due to initiatives implemented in FY19-20. While there were increments in annual listing fees and trading values, there were also challenges such as decreases in rental income and other revenue. Overall, the company reported a decrease in total expenses and an increase in profit after tax. The balance sheet indicates changes in non-current and current assets from June 2019 to June 2020.
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Presentation Transcript
Pakistan Stock Exchange Analyst Briefing Financial Results for the Year ended June 30, 2020 1
Financial Highlights PKR Millions Variance Analysis FY18-19 FY19-20 Change Overall increase due to following initiatives implemented during the FY19-20 effective July 01, 2019: i) Annual Listing Fee incremental revenue of PKR 66 million in FY19-20; ii) Additional cost recovery of PKR 10 million in FY19-20 with respect to IT Facilities and services provided to occupants of the premises. Moreover, despite the uncertain economic environment, average daily traded values increased in contrast to last year i.e. PKR 10.8 billion in FY19-20 vs. PKR 9.5 billion in FY18-19, resulting in an increase in trading fees by PKR 13 million. Net decrease due to the following: i) Decrease in rental income by PKR 9 million as MCB and Bank of Khyber were vacated. Consequently, space vacated by MCB is in process of being rented out, whereas, Bank of Khyber is being used as IT store. ii) Decrease in other revenue by PKR 8 million mainly due to the reason that during the FY19 higher exchange gain realization owing to exchange rate movement, income generated from sale of debris / scrap items and higher dividend received from VIS Credit Rating Company Limited. iii) However, adverse effect on revenues was mitigated by increase in markup income by PKR 8 million, due to higher rate of return on fund. Higher profit reported by both the Associated companies owing to improved performance. 8% 8% Core Operating Revenue 795 795 734 734 (4%) (4%) Other Revenue 193 193 202 202 12% 12% Share of Associates 384 384 344 344 7% 7% Total Revenue Total Revenue 1,372 1,372 1,280 1,280 Decrease in expenses as Management was conscious of the difficult business environment and focused on effective cost management. (0.5%) (0.5%) Total Expenses Total Expenses (1,182) (1,182) (1,188) (1,188) 1.1x 1.1x Pre Tax Profit Pre Tax Profit 190 190 92 92 2 Profit After Tax Profit After Tax 1.2x 1.2x 194 194 88 88 Earning Per Share Earning Per Share (EPS) (EPS) 1.2x 1.2x 0.24 0.24 0.11 0.11
Revenue PKR Millions 404 384 378 344 202 193 176 163 152 142 58 45 3 3 3 2 Listing Fee Trading Fee Facilities and equipment fee Data Vending fee Membership fees Other fees Other Revenue* Share of Profit from Associates Actual - FY20 Actual - FY19 3 *Other Revenue: Interest Income + Rental Income + Exchange gain, gain on sale of Fixed Assets, etc.
Expenses PKR Millions 534 506 218 209 205 158 136 123 61 53 53 48 35 31 HR Cost (Incl. Bonus) Fuel & Power Repair and maintenance IT maintenance Legal charges Depreciation and Amortisation Other Expenses* Actual - FY20 Actual - FY19 4 *Other Expenses Rent, Insurance, Travelling, Security, Advertisement& marketing, Directors remuneration, Contribution to CCPCF @1% of revenue, etc.
Balance Sheet PKR Millions 30th June 2019 30th June 2020 Particulars Non-Current Assets 4,139 3,169 Current Assets 2,767 2,753 Assets held for distribution to shareholders / disposal 4,729 4,697 Total Assets 11,635 10,619 Authorized Capital (1,000,000,000 ordinary shares of Rs.10 each) 10,000 10,000 Equity 9,062 8,891 Non-Current Liabilities 640 301 Current Liabilities 1,610 1,104 Liabilities related to assets held for distribution to shareholders / disposal 323 323 Total Equity & Liabilities 11,635 10,619 5
Initiatives Already in Place Listing Fee Optimization In place effective July 1, 2018, Increase spread over two years, Incremental Revenue of PKR 66 Mn in FY19-20. Transform organizational health and capability Organizational Re-structuring by strengthening the Management team. Implementation of IT Trading and Surveillance System expected by March, 2021. 3 1 2 Cost Recovery of Premises & Facilities In place effective July 1, 2018, Increase spread over a period of three years, 100% cost recovery for Premises and 33% cost recovery for IT facilities. 4 4 Demerger of Real Estate Business model developed, Expected to complete within one year - subject to requisite legal and regulatory approvals. 5 6
