Shareholding pattern
The company is tightly held by the directors and their relatives, collectively holding 92 percent of the company. The 'individuals' category refers to the minority shareholders, which owns 5 percent of the company. The 'others' category primarily includes the joint stock companies which own about 3 percent of PHDL.
Historical operational performance
Although all the sectors in the economy are dependent on the performance of the country's economy, whether directly or indirectly, the performance of the hotel industry in particular, has a greater dependency. If the image of the country globally is positive, with optimistic business sentiments, the hotel industry can be expected to perform better.
A reduction in top-line combined with an increase in costs resulted in poor gross margins while operating and net profits were negative for 1QFY20. The first quarter of FY20 was marred by the overall economic performance and further worsened by tensions at the borders with India. Moreover, as a result of macroeconomic correction, inflation also increased which increased their costs of sales by 15 percent year on year. PHDL was also still in the recovery stage, operating at less than 30 percent of total capacity at the start of FY20.
Pakistan Hotels Developers Limited foresees improvement in the economy as a result of China Pakistan Economic Corridor (CPEC) which is expected to increase energy availability and infrastructure development. Moreover, the company foresees improvement in law and order situation of the country which will directly impact their business. Projection of a positive image of the country on an international level will also help to bring in tourists.
PHDL is also emphasizing on risk management to cushion against cost hikes as a consequence of rupee devaluation and inflation in addition to installing fire fighting facilities.
=============================================================== PHDL: Quarterly results =============================================================== Rs (mn) 1QFY20 1QFY19 YoY =============================================================== Net revenue (Rs (mn))-LHS 85 94 -9.57% Cost of sales (60) (52) 15.38% Gross profit 25 42 -40.48% Administrative, selling (34) (43) -20.93% and general expenses Other operating income 1 0 600.00% Operating profit (8) (1) 822.22% Finance cost (0) (2) -85.00% Profit before taxation (9) (3) 196.55% Taxation (2) (1) 122.22% Profit after taxation (11) (4) 178.95% EPS (0.63) (0.22) 1.863636364 ===============================================================
Source: Company accounts
================================================= PHDL: Pattern of shareholding as at June 30, 2019 ================================================= Categories of shareholders % ================================================= Directors 33.64 Relatives of directors 58.81 Individuals 5.05 Others 2.5 ================================================= Total 100 =================================================
Source: Company accounts