Karachi: TRG Pakistan Ltd (TRG) announced a notable financial turnaround during their 9MFY25 analyst briefing, reporting a profit of PkR4.3 billion, a stark contrast to a loss of PkR18.3 billion in the same period last year. This shift was largely attributed to the rising IBEX stock price, though gains were partially counterbalanced by a downward revaluation of Afiniti.

Afiniti, facing an unsustainable debt load of US$500 million from 2019-2020, underwent financial restructuring. Vista, a major investor, converted approximately 50% of its debt into convertible preferred shares, gaining a controlling stake in Afiniti in the process. TRGI, the parent company of TRG, invested US$15 million in the restructuring, resulting in a 13% stake in Afiniti.

Furthermore, IBEX, another subsidiary, repurchased about 3.56 million shares from TRGI, reducing TRGI's holding to around 13%. Despite a decrease in the customer experience industry during FY24, IBEX saw a recovery in 9MFY25, with revenue increases of 4%, 6%, and 11% year-on-year in the first three quarters, respectively. This growth was driven by entering new geographies and market verticals.

IBEX's revenue for FY25 is projected to reach US$540-545 million, a 7% year-on-year increase. Meanwhile, Afiniti is focusing on investments in generative AI products due to a decline in demand in the predictive AI segment. The company clarified that there are no immediate plans for an IPO for Afiniti.

In response to inquiries about a recent share buyback, TRG's management cited ongoing legal proceedings and stated intentions to appeal a recent Sindh High Court ruling, citing irregularities. The company is not under formal coverage by AKD Securities Limited.