The balance 1.6% was allotted to staff at the same price. At the prevailing market value of its hare at Rs 37.90 per share, the right issue price, is highly rewarding.
Its paid-up capital increased to Rs 604.16 million from Rs 241.66 million in the preceding year.
Total assets increased by 14% to Rs 12.577 billion. In a business environment of excess liquidity and intense competition not only from leasing companies and modarabas, but also banks and DFI's, the company increased its total disbursements by 8% to Rs 5.8 billion.
While gross revenue at Rs 1.676 billion was the highest amount, its net profit before taxation was also the highest figure of its career.
Revenue from leasing operation both finance lease and operating lease aggregated to Rs 1.462 billion and constituted 87.2% of the gross revenue.
The highest concentration of business volume was in passenger cars at 50%.
An organization which started in 1986 in Karachi (Sindh) as a private limited company with an equity base of 10 million rupees, Orix Leasing Pakistan Ltd currently has a network of Rs 1.58 billion. It is listed on Karachi, Lahore and Islamabad Stock Exchanges.
Out of 28 leasing companies in Pakistan, the company's share carries highest market value of Rs 37.90 which is nearly 4 times of the par value. Askari Leasing share is seemed highest at Rs 19.80 followed by Sigma Leasing share at Rs 18 per share.
Orix Corporation, Japan is its parent company and together with its nominees has 49.9% stake in the equity of its Pakistani subsidiary.
Orix Corporation, Japan is an integrated financial services group providing innovative value added products and services to both corporate and retail customers.
It is listed on all Japanese stock exchanges as well as the New York Stock Exchange.
Orix Corporation has pursued a strategy of cross selling a diverse array of financial products services - ranging from leases, rentals and loans to life insurance and other product and services.
Since its formation in 1964, the Group's operations have expanded globally over 23 countries through wholly owned subsidiaries and joint ventures with leading local and international institutions.
The main business of activity of Orix Leasing Pakistan is leasing of moveable assets. Based on the results for the year ended June 30, 2002, the Pakistan Credit Rating Agency (PACRA) upgraded the company's entity rating from AA- to AA for long term debt and maintained the rating at A1+ for short term debt.
Its Term Finance Certificates have been assigned ratings of AA by PACRA.
During the year ended June 30, 2003 (FY 2002-03) the company generated gross revenue at Rs 1.677 billion as compared to Rs 1.602 billion posted in the preceding year (FY 2001-02) registering 4.67% growth in gross revenue and the amount of the year is the highest figure of its career.
One thing is remarkable about its growth is that it has steady, uninterrupted ascending trend as evident from the Six Year's Financial Summary appended with the Seventh Annual Report.
About the growth, the illustrious leasing professional, Chief Executive of the Company Humayun Murad elaborated that the growth is the result of steady expansion under taken by the company in the past.
The company has geographical presence in 23 cities. Its wide product range includes finance lease - the company's core business - auto finance for both corporate and individual customers, operating leases, consumer finance for home appliances, point of sale (POS) network, factoring and working capital finance.
He emphasized also that the diversity of products and extended networks of offices have provided not only a cushion against the market challenges but also the momentum for growth.
Profit before taxation at Rs 225.75 million is the highest which Orix Leasing Pakistan Ltd has ever earned and exceeds the previous year's figure by 49%.
The directors recommended cash dividend at 25% (2002:@ 45%). Although lower dividend pay out rate but the dividend amount during the year is higher than last year's.
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Performance Statistics (Million Rupees)
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June 30 2003 2002
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Share Capital-Paid-up: 604.16 241.66
Reserves: 976.43 562.49
Shareholders Equity: 1,580.59 804.15
L.T Debts: 4,399.56 3,467.13
L.T Certificate of Investment: 399.07 299.59
Deferred Liabilities: 255.64 267.62
L.T Deposits: 2,184.32 1,853.44
Current Liabilities: 3,757.86 4,299.98
Fixed Assets-Tangible: 597.53 548.20
Net Investment in Finance Lease
& Installments Loans: 5,896.26 5,315.29
L.T Investments: 476.52 401.80
L.T Finances & Loans: 60.93 36.36
L.T Deposits: 6.48 3.69
Current Assets: 5,539.32 4,686.54
Total Assets: 12,577.04 10,991.91
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Revenue, Profit & Pay Out
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Revenues
Finance Leases: 1,282.40 1,296.33
Installment Loans: 132.86 100.94
Operating Leases: 179.58 128.40
Other Income-Net: 82.06 76.36
Gross Revenue: 1,676.90 1,602.03
Expenses Financial &
Bank (Charges): 801.53 963.64
Selling General &
Admin (Expenses): 292.47 226.48
Direct (Cost) of Leases: 285.77 188.98
Allowance for Potential Lease &
Installment Loan Losses: 71.38 71.59
Total (Expenditure): 1,451.15 1,450.69
Profit Before Taxation: 225.75 151.34
Profit After Taxation: 208.76 80.47
Proposed Dividend Cash
@Rs 2.50 (Rs 2000:@4.50): 151.04 108.75
Earning Per Share (Rs): 4.84 2.79
Share Price (Rs) Dated 5-01-2004: 37.90 -
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Financial Ratios
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Price/Earning Ratio: 7.83 -
Book Value Per Share (Rs): 26.16 33.28
Price Book Value Ratio: 1.45 -
Debt/Equity Ratio: 74:26 81:19
Current Ratio: 1.47 1.09
Lease Income/Total Income (%): 87.18 88.93
Net Profit/Total Income (%): 12.45 5.02
R.O.E (%): 13.20 10.00
R.O.A. (%): 1.65 0.73
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COMPANY INFORMATION: Chairman: Yoshihiko Miyauchi; Vice Chairman: Shakirullah Durrani; Chief Executive: Humayun Murad; Chief Executive Officer & Company Secretary: Teizoon Kisat-FCA; Registered Office & Head Office: Overseas Investors Chamber of Commerce Building Talpur Road Karachi.