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

Hello, everyone, and welcome to NLCS Conference Call. Please note that this call is being recorded. I'd now like to hand over to our moderator for today, Roy Thomas. Please go ahead.

Thanks, Eli. Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to National Leasing Company, Alijarah Holding's Third Quarter and 9 Months 2024 Financial Results Conference Call. On this call from Alijarah Holding, we have Rami Soussou, the Chief Financial Officer; and Mohamad Sleiman, the Accounts Supervisor. 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, Rami.

Good afternoon, and welcome to Alijarah Holding Q3 2024 financial results and performance. The performance this year, as you have seen, it was -- there was a growth of 15%. And this is due to the -- what's been doing in the past year and the past 3 quarters. As you are aware, we recently signed an agreement with the consultant to start developing our land in Saudi. And we recently launched a new 14 warehouses in Aba Salee area. Those are the main things about the performance of the 2024. I will hand it over to Sleiman in order to give us a detailed analysis about the results and the numbers. And after that, we will open the floor for questions. Sleiman, please go ahead.

Good afternoon, everyone. This is Mohamad Sleiman. I'll be presenting the quarter 3 '24 performance for National Leasing Holding Company. We will go through that slide and give brief details about Alijarah performance, then we will open the floor for questions. I'll start with our net profit, which has reached QAR 13.69 million in quarter 3 '24 compared to QAR 11.84 million in the last year for the same period. Our total revenue and income has increased by 13.48% to reach QAR 50.65 billion (sic) [ QAR 50.65 million ] compared to QAR 44.63 million in the last year's same period. This was driven by the revenue from the core business and investments, including the profit from deposits. Our earnings per share will increase by 15.59% to reach QAR 0.028 per share compared to QAR 0.024 per share from the same period last year. Our expense slightly increased for 6.53% compared to the last year quarter 3 to reach QAR 34.65 million compared to QAR 32.63 million last year. The increase of revenue and the slight increase of expenses has led to an increase of 32.17% in net operating income, reaching QAR 15.99 million compared to QAR 12.1 million from the last year same period. Another increase in the finance costs where it increased from QAR 0.25 million to reach QAR 2.24 million this year and that was due to high Islamic financing that we utilized during the current year. Our profit again is QAR 13.69 million compared to QAR 11.84 million last year, giving an earnings per share of QAR 0.028 per share compared to QAR 0.024 last year. Moving to our financial position. Our total assets increased by 13.15% to reach QAR 807 million compared to QAR 730 million in December 2023. The increase is mainly due to the increase in our investment. Looking to our liabilities, our liabilities have increased as well due to obtaining Murabaha and Wakalah financing to back up our investments. It has increased from QAR 76 million to reach QAR 160 million by September 2024. Our equity has increased by 1.66% to reach QAR 647 million compared to QAR 636.84 million from December last year. Looking to our cash flow. The cash flow used in operating activities has increased to reach QAR 19.6 million compared to QAR 4.1 million last year in the same period. This increase was mainly due to the new investment. Net cash flow used in investing activities is QAR 28.47 million compared to cash flow from investing activity from the last year QAR 20.14 million. The net cash flow from financing activities is [ QAR 66.56 million ] compared to QAR 3.56 million last year, which was mainly due to obtaining Islamic financing, as I mentioned earlier. Our end of the payout cash and cash equivalents reached to QAR 54.36 million compared to QAR 42.54 million last year same period. This is the performance of Alijarah Quarter 3. And that the number shows that wed are progressing quarter after quarter. And hopefully, by the end of the year, we'll have much better results. Now we will open the floor for the questions, and we'll be happy to answer. Thank you.

[Operator Instructions] We have our first question from [indiscernible] from Ashmore Group.

I was just hoping you could share some sort of operating metrics for the core business or at least some trends in terms of what you're seeing in Qatar? And then maybe just bring me up to speed on how much of the third quarter has come from the new warehouses in Saudi. Forgive me if I misunderstood.

Good afternoon. Thank you for your question. Well, basically, the operating activities [indiscernible] is on Alijarah Driving Academy. We have -- usually, we present that in the segment reporting. But in Q3 and Q1, usually, it's management accounts. That's why there has no segment reporting been issued. But for sure, for the next quarter segment reporting will be present, and you will be able to view the part related to the operation. Huge sum is coming from the operation of our revenue, more than 50% that is coming from operation. As for the warehouses, currently, we have existing warehouses in Doha, [ 51 ] the old warehouses. The 14 new warehouses, again, they are in Doha, in Qatar. We recently got the completion certificate for those warehouses. And we are in the process of leasing those warehouses, hopefully, towards the end of the year and Q1 will have the impact on our income statement. Hopefully, I answered your question, if there's anything more to clarify, let me know. Thank you.

[Operator Instructions] As of right now, we don't have any pending questions. I'd now like to hand back over to the management for their final remarks.

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

Thank you, and we are all looking forward for end of year results. Have a lovely day.

Thank you for attending today's call. You may now disconnect. Have a wonderful day.