EFG Hermes Pakistan : Transmission of Quarterly Report for the Period Ended 30-06-2022

EXPERIENCE

FOCUS

GROWTH

2022

Half Yearly Report June 30

Contents

02	08
Company Information	Condensed Interim
	Cash Flow Statement
03	09
Director's Review - Report	Condensed Interim
	Statement of Changes in Equity
05	10
Auditor's Review Report	Notes to the Financial Statement
06	16
Condensed Interim	Pattern of Shareholding
Statement of Financial Position
07
Condensed Interim
Statement of Profit or Loss
and Other Comprehensive Income

Company Information

Board of Directors	Mr. Murad Ansari - Chairman
	Mr. Mohamed Ebeid - Director
	Mr. Fayyaz Ilyas - Director
	Ms. Sarah Maja - Director
	Mr. Freyan Byram Avari - Director
	Mr. Johannes Gunnell - Director
	Mr. Saad Iqbal - CEO & Director
Audit Committee	Mr. Johannes Gunnell - Chairman
	Mr. Fayyaz Ilyas - Member
	Ms. Sarah Maja - Member
	Mr. Freyan Byram Avari - Member
HR & R Committee	Mr. Freyan Byram Avari - Chairman
	Mr. Mohamed Ebeid - Member
	Ms. Sarah Maja - Member
Company Secretary	Mr. Shahid Kamal
Chief Financial Officer	Mr. Ahmad Zakir Hafeez
Auditors	M/s. Riaz Ahmad, Saqib, Gohar & Company Chartered Accountants
	5-Nasim, C.H.S. Major Nazir Bhatti Road,
	Off: Shaheed-e-Millat Road, Karachi, Pakistan.
Legal Advisor	M/s. Mohsin Tayebaly & Co. (MTC)
	1st Floor, Dime Centre, BC-4, Block 9, Kehkshan,
	Clifton, Karachi, Pakistan.
Share Registrar	M/s. F. D. Registrar Services (SMC-Pvt.) Limited
	Office No. 1705-A, 17th Floor, Saima Trade Tower,
	I.I. Chundrigar Road, Karachi, Pakistan.
Bankers	MCB Bank Limited
	Bank Alfalah Limited
	Askari Bank Limited
	United Bank Limited
	Allied Bank Limited
	Bank Al Habib Limited
	Habib Metropolitan Bank Limited
	Standard Chartered Bank Limited
	Habib Bank Limited
	JS Bank Limited
	Meezan Bank Limited
Registered Office	Office No. 904, 9th Floor, Emerald Tower,
	Plot No. G-19,Block-5, Clifton, Karachi, Pakistan
Lahore Branch	319 Siddiq Trade Centre, 72 Main Boulverad,
	Gulberg, Lahore, Pakistan

Website

www.efghermespakistan.com

3

DIRECTORS' REVIEW

BEGIN IN THE NAME OF ALLAH

THE MOST GRACIOUS AND MERCIFUL

Dear Member(s)

I, on behalf of Board of Directors of your Company, am pleased to present herewith un-audited condensed interim financial statements of the Company for the half year ended June 30, 2022. These condensed interim financial statements have been reviewed by the external auditors of the Company.

Performance Review

During the second quarter ended June 30, 2022, the Company earned operating revenues of Rs.56.425 million as compared to Rs. 64.774 million for the same period last year. The Company earned before and after tax (loss)/profit of Rs. (23.244) million and Rs. (28.134) million respectively as compared to before and after tax profit of Rs. 13.845 million and Rs. 9.074 million respectively for the corresponding period. Loss per share for the quarter stood at Rs. (1.45) compared to earnings per share of Rs. 0.45 for the corresponding period.

For the half year ended June 30, 2022, the Company earned operating revenues of Rs. 101.913 million as compared to Rs. 138.831 million for the corresponding period. The Company earned before and after tax loss Rs. (30.900) million and Rs. (39.060) million respectively as compared to before and after tax profit Rs. 36.687 million and Rs. 25.606 million respectively for the same period during last year. Loss per share for the half year is Rs. (1.95) as compared to earnings per share of Rs. 1.28 for the corresponding period.

The decline in revenue and earnings over the corresponding period was driven by significantly decreased activity in the market turnover amidst rising political and economic uncertainty and multi-year high interest rates. However, despite the tough market conditions, the Company improved its market share compared with the corresponding period last year.

The KSE100 shed 7.5% and market activity in ADVT terms was 72% lower than in the corresponding period last year. Very high political uncertainty through most of the quarter casted doubts over the continuation of IMF programme, which is paramount for Pakistan to avert a severe balance-of-payment crisis. Nonetheless, Pakistan reached a staff-level agreement with the IMF in July, which will pave the way for not only the continuation of IMF programme by late August but also other external flows. The combination of potentially lower political noise and better economic management should help the market in improving both price performance and activity in the coming quarter.

In conclusion, we pray to almighty Allah for his blessings, guidance, health and prosperity to us, our Company, Country and Nation.

For and on behalf of the Board of Directors

Karachi, August 10, 2022

Half Yearly Report 2022

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Half Yearly Report 2022