TRG Pakistan (TRG) announced its 4QFY23 LPS of Rs12.9 as against LPS of Rs6.3 in 3QFY23 which remained in line with expectations. This takes full year FY23 LPS at Rs2.5 vs LPS of Rs9.1 in FY22.

The company did not announce any cash dividend along with the results.

Loss in 4QFY23 was primarily led by a share of loss from equity accounted investee. TRG recorded share of loss of Rs8.2bn in 4QFY23 as against share of loss of Rs4.0bn in 3QFY23 and share of profit of Rs6.3bn in 4QFY22.

This share of loss is likely due to mark-to-market loss booked on IBEX shares as stock price during 4QFY23 declined by 12% QoQ and revaluation loss/share of profit from TRG International Artificial Intelligence company, Affiniti.

As reported in full year FY23 accounts, TRG recorded net loss of Rs1.4bn primarily due to mark-to-market gain booked on IBEX as share price on NASDAQ increased by 26% during the year. However this was offset by a loss resulting from the revaluation of TRGIL’s stake in the Affiniti.

To highlight, since the year-end, i.e. June 30, 2023, IBEX share prices have declined by 27% from US$21.23/share to US$15.45/share.

In other comprehensive income (not part of EPS), the company recorded foreign currency translation gain of Rs19bn in FY23 compared to Rs11bn in FY22. As per Director Report, this gain is due to a strengthening of the US Dollar compared to the Pak Rupee, as TRGIL incurred a net loss in FY23.

Courtesy- Topline Research