Security Leasing Swings to Nine-Month Loss as Operating Income Declines

KARACHI: Security Leasing Corporation Limited (SLCL) reported a net loss of Rs1.75 million for the nine months ended March 31, 2026, reversing a profit of Rs582,780 recorded during the corresponding period last year, reflecting pressure from lower operating income and higher administrative expenses.

According to the company’s condensed interim financial statements, total income declined to Rs10.72 million during the nine-month period, compared with Rs13.47 million in the same period of the previous year. The decline was mainly driven by lower other operating income, while income from finance leases remained minimal at Rs40,490.

Administrative and selling expenses stood at Rs12.46 million, slightly lower than Rs12.75 million a year earlier, while finance costs amounted to Rs10,295. As a result, the company posted an operating loss before tax of Rs1.75 million, compared with a pre-tax profit of Rs704,334 in the corresponding period last year.

For the third quarter alone, Security Leasing reported a net loss of Rs430,145, compared with a marginal loss of Rs10,689 in the same quarter of the previous year, highlighting continued operational challenges. Earnings per share (EPS) for the nine-month period came in at negative Rs0.05, against positive Rs0.02 a year earlier.

On the balance sheet, the company’s total assets declined to Rs526.45 million as of March 31, 2026, from Rs537.06 million at the end of June 2025. Shareholders’ equity also decreased to Rs41.02 million, compared with Rs42.77 million at the close of the previous financial year, reflecting the impact of the reported loss.

Despite the earnings setback, the company generated positive operating cash flow of Rs272,827, compared with a net operating cash outflow of Rs1.01 million in the corresponding period last year. Cash and bank balances improved to Rs568,573 at the end of March 2026 from Rs295,746 at the beginning of the financial year.

The latest results indicate that while Security Leasing has strengthened its cash position through improved working capital management, declining operating income continues to weigh on profitability, underscoring the need for stronger revenue generation in the coming quarters.