Javedan Corporation Limited recorded unconsolidated earnings per share of PKR 4.11 in FY25, as compared to earnings per share of PKR 4.47 in FY24.
The company recorded net sales of PKR 7.4 Bn, up 69% from PKR 4.4 Bn in FY24. Along with this, it saw its gross margin contract from 61% in FY24 to 31% in FY25. As a result, gross profit fell 14% from PKR 2.6 Bn in FY24 to PKR 2.3 Bn in FY25. JVDC posted profit after tax of PKR 1.6 Bn in FY25, compared to PKR 1.7 Bn in FY24. In 1QFY26, the company saw its gross margin expand to 78% from 40% in SPLY. Profit after tax fell 20% to PKR 724 Mn during the period compared to PKR 910 Mn in 1QFY25 due to lower revenue.
Moving forward, the management apprised that gross margins will be lower as low-cost inventory has been mostly sold. Any further increase in gross margins would have to be due to price appreciation of land in Naya Nazimabad. The first handover of apartments by the company is expected to be completed this year at FL-4. The company expects that this will create a positive trickle-down effect for value appreciation in land across the project.
During FY25, the company launched commercial plots of 230 and 460sqyd size at the Naya Nazimabad business enclave. Plots were sold at a consideration of about PKR 375,000 per sqyd. Management highlighted that current market price of the same plots stands at 425,000 per sqyd indicating strong market demand. With regards to the GOC permission required for development of land near People’s Steel Mill the management clarified that this was just another NOC required for development and that the complete 1,366 acres of Naya Nazimabad are outright owned by Javedan Corporation.
With regards to the Sapphire Bay Islamic Development REIT project, it was highlighted that this 2,000-acre project is for the mid to long term. Currently, the land parcel has been handed over to the REIT and master planning is ongoing. Going forward, the company management was hopeful of an increase in revenues from Naya Nazimabad Gymkhana and an appreciation in land prices as occupancy levels rise. They plan to focus on developing the remainder of Phase 2 before proceeding to the sale of plots in Phase 3.
Important Disclosures
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