KARACHI: TRG Pakistan posted a net profit of Rs25.8 billion for 2020-21, which is 339.4 times higher than the company’s earnings in the preceding year.

The reason for the steep hike in earnings is the higher share of profit in equity accounted investee, which clocked in at Rs30bn in 2020-21, according to Topline Securities.

The brokerage house noted that while it is waiting for detailed accounts and more disclosures, it believes the rise is likely because of a gain on the sale of E-Telequote business by TRG International in the last quarter of 2020-21 amounting to the tune of Rs30-35 per share.

Earnings per share in April-June clocked in at Rs34.2 versus Rs0.1 in the same period of the preceding fiscal year.

There was no payout announcement along with the financial result.

The said transaction had completed in the fourth quarter of 2020-21, which would have led to a higher share of profit in equity accounted investee, Topline Securities said. TRG currently holds 45.3pc in TRG International that had a 70pc stake in E-Telequote.

“The management of the company had indicated that the proceeds of the sale of E-Telequote will be used either through a buyback of TRG shares or dividend payout to TRG shareholders — for which any material development is still awaited,” it said.

The share price of TRG Pakistan dropped 0.56pc to Rs157.73 on Wednesday.

Published in Dawn, October 7th, 2021