Alijarah Holding (Q.P.S.C.) (NLCS) Earnings Call Transcript & Summary

Hello, and welcome to the National Leasing Company Conference Call. [Operator Instructions] I'd now like to welcome Roy Thomas to begin the conference. Roy, over to you.

Thanks, Kevin. Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Alijarah Holding First Quarter 2023 Financial Results Conference Call. On this call from Alijarah Holding, we have Rami Soussou, the Chief Financial Officer; and Alaa Tahsin Al Shekly, the Head of Business Development and Investment. We will conduct this conference call with the management first reviewing the company's results followed by Q&A. I will turn the call now over to Rami. Go ahead, Rami.

Good afternoon, and thank you all for joining today's afternoon call. I'd like to welcome you to Q1 of 2023 Alijarah Holding conference call. We'll start by discussing the performance of the company on the 3 months 2023, where the revenue from the core business have increased by 29%, approximately QAR 2 million that generated from Alijarah Driving Academy. There was an increase in the net profit from QAR 2.95 million to reach QAR 4.09 million, that's an increase approximately 38.8% -- that's the growth and Alijarah net profit for Quarter 1, and then as well, the earnings per share increased from QAR 0.006 to QAR 0.008. Moving forward, with the income statement and the details of this profit. Our total revenue -- dropped from 19.69 to reach 10.47. This drop is mainly driven by the drop in investment income where we did not receive or we did not account for the dividend of some of the -- our investments. Those will be accounted for in the next quarter. Our total expenses has dropped dramatically this quarter. We managed to maintain our expense and to look over our expense by cutting costs and not taking any additional expenses not related. Our net operating income dropped due to the fact that's related to the investment income. Moreover, this was compensated by the net finance income for this quarter where it has increased by 355%, which is increased from 3.7 million, -- to 3.7 million, sorry, from QAR 0.820,000. This is driven by the interest rate during the previous period. Again, our profit increased from 2.95 million to reach 4.09, hoping for the next quarter as well, this growth will remain and will continue. Moving forward to our financial position. Our total assets dropped slightly by 3%. It was reduced approximately QAR 25 million. And the main reason that driven this drop is the payment of dividends - of Alijarah dividends in the first quarter and the negative impact of the market on our financials. As for our liabilities, we dropped our liabilities as well. We -- we paid off our [indiscernible]. We don't have any loans now and paying out our contractors and suppliers -- that was the reason of the drop. The equity dropped by 3%, which is, again, driven by the payment of the dividend and the impact of the fair value of the financials. As for our cash flow, there was cash used in operating activity, [ 5.13 ] compared to [ 31.5 ] million. This drop related to the cash that we have used in our operating activity. There was a drop again in the investing activities from 238 to 8.38. This was related to transferring our deposits into long-term deposits. And as for financing activities, since we have paid off the loan, there is not much on the financing activities, except for the dividend rate in this year. This gives us a decrease in our cash used in the current quarter, 11.5 decrease in cash compared to 226 decrease in cash. And this gives us cash equivalent at the year-end that prior period end 11.5 compared to 22.94. This sums up the performance of Alijarah for the first quarter of 2023. We're looking for the continuous growth of this -- in 2023, especially now we're activating the investment strategy more and more. Now we are open for your questions, allow with me here to answer any investment-related questions, and I'm here to answer any financial and financial statements with questions. Thank you.

[Operator Instructions] And there are no questions at this time. So I'd like to hand back to Roy.

If there are no questions, we'd like to thank Alijarah Holding management for the results update and look forward to speaking to you all for the next quarter results. Thank you.

Thank you.

That does conclude our conference for today. Thank you for participating. You may now all disconnect.

Thank you.

Thank you all.