Karachi November 04, 2021: In a recently filed quarterly financial statements TRG updated deferred tax has increased to PKR8.7 billion. Company tax liability increased along with increase in TRG profitability from last year. TRG deferred tax liability was PKR3.9 billion at the end of June 2020 which is then increased to PKR8.1 billion at the end of June 2021 and now 8.7 billion at the end of September 2021.
In September quarter TRG management has written in its director report that this was a strong quarter for TRG International (TRGI) and its portfolio companies. We successfully completed the sale of our eTelequote business in July. Our portfolio company, IBEX has been investing in additional capacity in preparation for increased volumes expected in the second half of the fiscal year.
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We anticipate its sales mix to further improve, with growth in more profitable business and pivot from legacy low margin accounts towards higher growth clients dominated by the emerging technology sector. Our enterprise software portfolio company continues to deliver topline growth, and with a robust revenue pipeline, we expect additional enterprise clients to come online before the end of the fiscal year.
The value of the Company’s share in TRGI as of September 30, 2021 is Rupees. 54.0 billion. This value was Rupees. 49.6 billion on June 30, 2021. This represents an increase of Rupees 4.4 billion during the period and an overall increase that is nearly fifteen times the value of its original investment. In addition to the Company’s stake in TRGI, it also has other assets of Rupees 0.27 billion and liabilities of Rupees 9.0 billion resulting in net assets of Rupees 45.2 billion.
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The Company recognized interest income of Rupees 3.8 million in its income statement, whereas it incurred expenses of Rupees 9.9 million. The share of profit from associates was Rs.44.3 million. Deferred tax expense amounting to Rupees 6.6 million was incurred during the period. As a result, the Company posted net profit of Rupees 31.6 million for the period ended September 30, 2020.