The National Education Company achieved profits of 37.2 million riyals during the nine months ended May 31, 2020, compared to 37 million riyals in the corresponding period of last year, with a growth rate 0.29%.
According to Arabia Net, the company achieved 12 million riyals after the Zakat and tax in the financial quarter ended May 31, compared to 13.4 million riyals in the corresponding period of Last year, down 9.8%.
Profits against those in the previous quarter fell by 9.7%, to 13.4 million riyals.
The company said that the decrease in profits is due to the decrease in other revenues during the current quarter from the corresponding quarter of the previous year, and the result was that in the same quarter of the previous year the value of the bill was refunded Collected by the Ministry of Labor and Social Development with the support of the Private Sector Stimulation Office in the amount of SAR 2.5 million.
The current quarter also witnessed an increase in financing costs during the current quarter as a result of applying standard 16 to the lease contracts of Al-Khwarizmi Educational Company and Al-Ghad Schools Private Company. In addition to the decrease in the revenue generated from Islamic murabaha during the current quarter from the corresponding quarter of the previous year.
The provision for credit losses component during the current quarter for the same quarter of the previous year increased by 39% as a result of the company hedging the formation of additional allocations to cover any economic effects resulting from the Corona virus pandemic. Newbie.
The zakat expense also increased, the financial fee for renewing the residence of non-Saudi employees increased, and government grants and subsidies decreased. This is despite the rise in activity revenues during the current quarter in the educational complexes of the National Education Company, in addition to the revenues generated by the Al-Khwarizmi Educational Company and the Al-Ghad National Schools Company. In addition to the depreciation expense for the current quarter decreased from the same quarter of the previous year as a result of changing the productive lives of some categories of fixed assets during the current period.
