Leasing Companies: NETWORK LEASING CORPORATION LIMITED - Nine Months Ended March 31, 2004
It is a public limited company incorporated in the province of Sindh. It was incorporated on August 15, 1993. Commercial operation effectively began in January 1995.
Its registered office and head office are situated in Gul Tower I.I. Chundrigar Road Karachi. It has two branch offices at Gulberg III Lahore and University Road Peshawar.
The company is listed on all the stock exchanges of the country and is principally engaged in lease financing of assets. It is classified as Non-Banking Finance Company (NBFC) by the Securities and Exchange Commission of Pakistan (SECP).
At present Network Leasing shares are trading at Rs 7.90 per share at 21% discount to the par value of Rs 10. Although the market value of the share is below par value, but during the last one year the highest quotation was recorded above par value at Rs 12.25.
During the period under review ie 9M 2003-04 the company's revenue declined by 20.16% to Rs 91.16 million from Rs 114.18 million in the same period last year (SPLY).
However its income from its core business of leasing increased to Rs 75.03 million from Rs 68.03 million by Rs 7.00 million ie 10.29% over SPLY.
The sharp decline was in its investment income by Rs 29.89 million to Rs 11.93 million from 41.82 million posted for 9M 2002-03. The lease portfolio at Rs 665.93 million comprised 55.7% of total assets where as the investment portfolio (both long and short term) at Rs 273.96 million comprised 22.9% total assets. It appears that the investment portfolio is relatively large may be because access to good leasing clients is limited.
During 9M 2003-04 the company earned net profit after taxation at Rs 9.01 million as against Rs 25.95 million in the same period last year ie 9M 2002-03 registering sharp decline in the profit by 65.3%.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2004 2003
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Share Capital-Paid-up: 175.00 175.00
Reserves: 43.18 34.17
Shareholders Equity: 218.18 209.17
L T Debts: 387.17 280.17
Deposits on Lease Contracts: 91.68 86.93
Current Liabilities: 497.89 404.79
Fixed Assets: 73.21 75.71
Net Investments in Leases: 392.72 352.47
L.T Investments: 15.78 22.46
L.T. Loans & Advances: 20.90 19.23
L.T. Deposits & Deferred Costs: 25.35 29.93
Deferred Taxation: 8.88 8.88
Current Assets: 658.08 472.38
Total Assets: 1,194.92 981.06
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Profit & Loss A/c
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For Nine Months Ended March 31 2004 2003
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Revenues
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Lease Income: 75.03 68.03
Investment Income: 11.93 41.82
Other Income: 4.20 4.33
Gross Revenue: 91.16 114.18
Total (Expenses & Provisions): (81.40) (87.48)
Profit Before Taxation: 9.76 26.70
Profit After Taxation: 9.01 25.95
Earnings Per Share (Rs): 0.69 1.98
Share Price (Rs) on 28.06.2004: 7.90 -
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Financial Ratios
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Price/Earning Ratio: 11.45 -
Book Value Per Share: 12.47 11.95
Debt/Equity Ratio: 64:36 57:43
Current Ratio: 1.32 1.17
Lease Income/Total Profit (%): 82.31 59.58
Net Profit/Total Income (%): 9.88 22.73
R.O.E: 4.13 12.41
R.O.A (%): 0.75 981.06
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COMPANY INFORMATION: Chairman: Mohammed Elias; Chief Executive: Asif Siddiqi; Director: Musarat Siddiqi; Company Secretary: M. Nadeem Ahmad; Registered Office & Head Office: 301-302, Gul Tower, I.I. Chundrigar Road Karachi 74000; Branch Office: Gulberg III, Lahore Fawad Plaza, Peshawar.
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