For the period July to December 2021, TRG Pakistan recorded a massive loss of Rs. 12.6 billion. In the same period last year, the company made a profit of Rs. 4.42 billion.
According to the most recent financial report, the company’s loss per share was Rs. 23.06, compared to Rs. 8.11 in earnings per share.
The income statement of TRG Pakistan is principally influenced by changes in the value of its share in TRG International Limited. It contributed Rs. 14.8 billion to the net loss in equity accounted investee (i.e., TRGIL).
A mark-to-market loss on IBEX shares held by TRGIL accounted for Rs. 6.8 billion of the loss from associates. During the time period under consideration, IBEX’s stock price on NASDAQ fell by nearly 34%.
The decline in share value is principally due to two factors: (1) a drop in the share price of IBEX between June 30, 2021, and December 31, 2021.
(2) A financial charge as a result of a partial redemption of some TRGIL shareholders in December 2021.
In addition to its ownership in TRGIL, the company has other assets of Rs. 0.1 billion and liabilities of Rs. 6.8 billion (mostly related to deferred taxes), for a total of Rs. 33.5 billion in net assets.
TRG Pakistan’s share in TRG International Limited was valued at Rs. 40.2 billion on June 30, 2021, a fall of Rs. 9.4 billion from Rs. 49.6 billion on June 30, 2021, affecting the company’s total financial sheet and resulting in a significant loss on the bottom line.
The remainder of the loss was due to the redemption of certain preference shares in December 2021.
Because investors could have their preference shares purchased back at the higher of the original issue price or their pro-rated share of the underlying net assets, including their share of a preference amount, these preference shares were originally classified as debt owed to their holders at the amount of their original investment.
The difference between the redemption amount and the original issue price was represented as a one-time finance charge because the redemption value of these preference shares was greater than the original issue price because to the high value of the underlying monetization.
In its revenue statement, the company recorded interest income of Rs. 7.1 million, while incurring expenses of Rs. 16.8 million. During this time, Rs 2.2 billion in deferred tax was reversed.
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