Karachi October 2 2023: TRG Pakistan reported loss of PKR 7.04 billion as company booked PKR 8.2 billion loss from associates due to revaluation of TRGIL’s stake in the AI Software Company during last quarter of current fiscal year, according to company filing to the exchange.
This is the second highest quarterly loss reported by the company in its financial history.
On the contrary, company's full year loss drops to PKR 1.34 billion despite exchange gain of PKR 9.7 billion during the full year.
"The most significant item on our balance sheet is the value of the Company’s share in TRGIL, our sole operating asset. As of June 30, 2023, the value of our share in TRGIL is Rupees 78.1 billion, representing an increase of Rupees 21.4 billion compared to Rupees 56.7 billion on June 30, 2022. This increase is due to a strengthening of the US Dollar compared to the Pak Rupee, as TRGIL incurred a net loss during the financial year due to reasons explained in the ensuing paragraph. In addition to the Company’s stake in TRGIL, it also has other assets of Rupees 0.03 billion and liabilities of Rupees 12.6 billion (primarily relating to deferred taxes) resulting in net assets of Rupees 65.5 billion" stated in company's report.
"Our income statement is primarily driven by the changes in value of our share in TRGIL. Our share of the net loss in equity accounted investee (i.e. TRGIL) was Rupees 1.4 billion, before taxation. There was a mark-to-market gain booked on Ibex shares held by TRGIL as Ibex’s share price on NASDAQ increased by almost 26% during the year under review. This was, however, offset by a loss resulting from the revaluation of TRGIL’s stake in the AI Software Company as well as operating expenses incurred by TRGIL during the year" stated the company.