PSX Reports 368% Profit Surge to Rs1.03 Billion in FY24

The Pakistan Stock Exchange (PSX) has made headlines with its impressive financial performance for the fiscal year 2024. The exchange reported a profit of Rs1.03 billion, marking a staggering increase of 368% compared to the previous year. This remarkable growth highlights the resilience and potential of the stock market in Pakistan, especially in a time when many economies are facing challenges.

According to the financial results released to the exchange, PSX's profit in the previous fiscal year was only Rs219 million. This significant leap in earnings per share (EPS) rose to Rs1.28 in FY24, up from Re0.27 in the same period last year. Such a dramatic increase in EPS is a clear indicator of the exchange's robust performance and its ability to generate value for its shareholders.

Following the announcement of these results, the share price of PSX surged, reaching a high of Rs15. At the time of reporting, the share was trading at Rs14.32, reflecting a gain of Re0.38 or 2.73%. This positive market reaction underscores investor confidence in the exchange's future prospects.

During the fiscal year under review, PSX's revenue from various sources, including listing fees, exchange operations, interest income, and rental income from investment properties, improved significantly. The total revenue climbed to Rs2.12 billion, compared to Rs1.46 billion in the same period last year, representing an increase of nearly 45%. This growth in revenue is a testament to the exchange's effective management and strategic initiatives.

However, it is important to note that PSX's administrative expenses also saw a rise, ballooning to Rs2 billion in FY24 from Rs1.57 billion in the previous year, which is an increase of 27%. Despite this rise in expenses, the exchange managed to achieve an operating profit of Rs112.6 million, a remarkable turnaround from a loss of Rs110 million in the previous fiscal year.

Additionally, PSX recorded Rs996.9 million as other income and share of profit from associates in FY24, compared to Rs359.6 million in the same period last year, marking an exponential increase of 177%. This substantial growth contributed to the exchange's profit before tax, which reached Rs1.1 billion in FY24, up from Rs249.5 million, reflecting a 345% increase.

PSX has a rich history, having been incorporated under the Companies Act, 1913, on March 10, 1949, as a company limited by guarantee. It was re-registered as a public company limited by shares on August 27, 2012. This long-standing institution has played a crucial role in the development of Pakistan's financial markets.

The impressive financial results of the Pakistan Stock Exchange for FY24 not only reflect its strong operational performance but also signal a positive outlook for investors. As the exchange continues to grow and adapt to market conditions, it remains a vital component of Pakistan's economic landscape. Investors and stakeholders alike should keep a close eye on PSX as it navigates the challenges and opportunities that lie ahead.