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

Hello and welcome to the National Leasing Alijarah Holding Conference Call. I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Mr. Roy Thomas to begin the conference. Roy, over to you.

Thanks, Paresh. Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to National Leasing company Alijarah Holding's Fourth Quarter and Year-end 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 management, first, reviewing the company's results, followed by Q&A. I will turn the call now over to Rami. Go ahead.

Thank you, Roy, and thanks for introduction. This is Rami Soussou, the CFO of the company. With me is Alaa. First of all, good afternoon. And thanks, ladies and gentlemen, for joining this call. We will start with the 2023 performance, where our revenue from core business reached to QAR 38.94 million compared to QAR 32.98 million. That's an increase of approximately 15.3%. However, there was an impact on the net profit. Our net profit dropped a bit, compared to 2022, to reach QAR 15.4 million compared to QAR 19 million of 2022. Our earnings per share reached QAR 0.031 in 2023 compared to 0.39 (sic) [ QAR 0.039 ] in the year 2022. Moving forward, we will just give financial highlights about our balance sheet. Our assets compromise (sic) [ comprise ] of mainly balances with financial institution and deposits. And then investment security are -- the 2 major financial -- or assets composition. And then we have the property and equipment in addition to our investment property. Our cash and cash equivalent stood at QAR 334 million in 2023. Our investment securities stood at QAR 168.5 million in 2023. And our investment properties stood at the same value compared to last year, QAR 111.19 million. And our total assets remained the same, did not really move this year, though our investment in securities dropped a bit because of the valuation, the fair value, towards year-end. Other than that, nothing major on the assets side. Moving forward, to the profitability. There was -- the income composition, as I said, it got enhanced, especially from the revenue from core business. We increased the revenue from core business from QAR 32.980 million in 2022 compared to QAR 38.94 million. Again, our composition of the income is the investment income. We have QAR 17.10 million of investment income compared to QAR 15.51 million in 2022. The one who pulled up the revenues in 2022 was other revenues, which was [ the release of ] the provisions of last year. And this when we talk about our income composition, while profitability: The net operating profit for the year 2023 stood at [ 16 million ] compared to net profit that stood at QAR 15.4 million, compared to net operating profit [ 19.7 million ] compared to a net profit of QAR 19.11 million. Moving forward, the -- regarding the capital adequacy. Total equity breakdown between our share capital, that's -- remain unchanged. Our accumulated losses are getting lowered because of the profit that we did this year. And the fair value reserve have increased with -- it was minus QAR 40 million, to reach to minus QAR 53 million; and this is basically related to the fair value of our long-term investments that we're holding. Again mainly our deposits and investments -- mainly our assets [ lies ] between deposits and investments. No major change that happened this year on the deposit and investment mix. That's for the deposits and investments. Moving forward to the details of the income statement. When we look at the income statement, our revenue: As I said, there was a drop in the total revenue and income, but mainly that was because of the other revenue. Our total expenses dropped from QAR 60 million to reach QAR 44.75 million. Our net operating income dropped from [ 19.71 to 16.06 ]. Our profit for the year dropped from QAR 19.11 million to QAR 15.4 million. Our total assets and our financial position remained the same. And as I mentioned earlier, our total liabilities increased slightly because we have a new wakalah that was signed towards the second -- third quarter of this year. Our equity almost remained -- slightly changed because of [ the dividend ] that was paid last year. And this is mainly the performance of Alijarah for the year 2023, hoping that our performance for the -- for this coming year will be as good as '23 and even better. Now we are opening the floor for the questions. We are ready to take your questions. Thank you.

[Operator Instructions] There appear to be no further questions at this time. I will now hand the call back to Mr. Roy Thomas. Please go ahead.

All right, yes. If there are no questions: We would like to thank Alijarah Holding's management for the results update. And we look forward to speaking to you all [ for the ] First Quarter 2024 Results Conference Call. Thank you.

Thank you.

Thank you. This concludes today's conference call. You may now disconnect.