Arif Habib Limited (PSX: AHL) posted a stellar result for FY17, which saw the company’s bottom-line increase by an impressive 115 percent on a year-on-year basis. Starting from the top, the company registered a handsome increase of 45 percent in its top line that was primarily attributable to robust market conditions and a decent increase in both its brokerage as well as investment banking divisions.
The primary contribution came from the firm’s brokerage business, which represented 68 percent of total operating revenue and grew at a remarkable 45 percent as compared to FY16. At the same time AHL also managed to increase revenue attributable to its investment banking division by 45 percent.
Other significant contributions to the company’s bottom-line came from the capital gain realised on sale of investments that amounted to almost Rs895 million. Combining this with the loss on re-measurement of investment property of Rs375 million resulted in a net addition of Rs520 million to AHL’s bottom-line.
AHL also recorded a 44 percent increase in its administrative expenses on account of the increased operational expenditure related to the growth in its brokerage and investment banking divisions. The finance cost of the firm came down by 17 percent amidst the low interest rate environment, whereas other income registered an increase of 80 percent.
AHL’s EPS for FY17 clocked in at Rs16.01 as compared to 7.45 for FY16, showing a 115 percent increase. The firm also announced a final cash dividend of Rs10 per share as compared to Rs7 for FY16. Going forward, AHL looks set to enhance its profitability even further with new equity and debt listings as well as M&A activities. The company is also intent on augmenting its existing brokerage business through a variety of additions to its product and services portfolio.
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