Karachi: Saudi Pak Consultancy Company Limited, formerly known as Saudi Pak Leasing Company Limited, reported a profit after taxation of Rs9.88 million for the nine-month period ended March 31, 2026, compared with Rs44.34 million in the same period last year.
According to the company’s third quarterly report, total income fell to Rs53.84 million during the period, down from Rs91.19 million a year earlier. The company attributed the decline mainly to the absence of revenue from its consultancy services business and lower recoveries from its inherited lease portfolio.
Profit remains positive despite lower income
The company generated Rs7.34 million from finance leases during the nine-month period, compared with Rs3.54 million in the corresponding period. Other operating income, however, declined substantially to Rs46.50 million from Rs87.64 million.
Finance costs dropped sharply to Rs1.80 million, compared with Rs24.10 million last year, while administrative and operating expenses remained broadly stable at Rs44.60 million.
As a result, operating profit before provisions stood at Rs7.44 million, compared with Rs21.93 million in the previous year. Reversal of provisions contributed another Rs3.10 million, taking profit before taxation to Rs10.54 million. After taxation of Rs656,510, profit after tax came in at Rs9.88 million. Earnings per share declined to Rs0.22 from Rs0.98.
Consultancy transition remains a key focus
The company is in the process of moving away from its traditional leasing business toward consultancy services. Management said that no revenue had yet been generated from the consultancy business because memorandums of understanding signed with clients had not matured into finalized business arrangements.
At the same time, recovery from the inherited lease business remained below expectations. The company said pending execution of settlements relating to decreed cases had also limited the benefits from negotiated liabilities during the reporting period.
Management said it is actively approaching potential consultancy clients, with negotiations underway and expectations of reaching final agreements with some clients. It is also pursuing out-of-court settlements for non-performing loans and leases in an effort to accelerate recoveries and address legacy assets.
Negative equity improves
One of the more encouraging developments was an improvement in the company’s negative equity position.
As of March 31, 2026, negative equity stood at Rs391.20 million, improving from Rs399.18 million at June 30, 2025. The company said it expects further improvement through settlements, remissions and write-offs.
However, the balance sheet continues to reflect significant financial pressure. Total assets stood at Rs630.09 million, while total liabilities amounted to Rs1.02 billion, leaving net assets negative at Rs391.20 million. Accumulated losses stood at approximately Rs1.61 billion.
Cash position under pressure
Cash and bank balances declined to Rs44.48 million by March 31, 2026, compared with Rs69.74 million at the end of June 2025.
The company recorded negative cash flows from operating activities of Rs14.61 million during the nine-month period. Investing activities generated Rs1.74 million, while financing activities used Rs12.40 million. Overall, cash and cash equivalents declined by approximately Rs25.26 million during the period.
The financial statements also highlight the continuing burden of legacy obligations. Current liabilities exceeded current assets by approximately Rs498.68 million as of March 31, 2026, although this gap had improved from Rs510.70 million at June 30, 2025.
Recovery and restructuring remain central to strategy
Saudi Pak Consultancy’s management has identified three major priorities: improving recoveries through negotiated settlements, restructuring its investment portfolio, and launching new consultancy initiatives and business plans.
The company believes successful recovery of overdue lease rentals, term loans and collateralized assets could strengthen liquidity and help address long-standing financial liabilities. It also expects the consultancy business to become an important source of future revenue as agreements with prospective clients are finalized.
Overall, the March 2026 results present a mixed picture. The company remains profitable, and its negative equity has improved, but the sharp decline in income, negative operating cash flow and substantial accumulated losses continue to underline the challenges associated with its transition from leasing to consultancy.
