Karachi: In a notable turnaround, Trust Modaraba has reported a significant increase in profits for the quarter ending September 30, 2024, according to its latest financial disclosures. The performance is a marked improvement over previous quarters, reflecting gains in core business operations and an appreciable performance in the Pakistan Stock Exchange (PSX).

The quarter saw Trust Modaraba achieving a profit after tax of Rs. 6.25 million, up from Rs. 5.30 million in the corresponding quarter last year, showcasing a growth of approximately 29% in income from core business operations. This improvement was largely driven by effective portfolio management and robust income generation from diminishing musharakah, ijarah, and murabahah transactions.

According to information available from the Pakistan Stock Exchange, the company benefited from a rising market index which contributed to an unrealized gain of Rs. 1.28 million on its stock holdings, despite facing an unrealized loss due to market volatility. Total assets of Trust Modaraba have also increased to Rs. 408.86 million as of September 30, 2024, compared to Rs. 414.35 million as at the end of the last financial year.

Operational efficiencies and strategic asset management have played a crucial role in overcoming challenges posed by inflationary pressures, which saw the Modaraba’s operating expenses increase by 20% during the quarter. Nonetheless, the management has successfully navigated these challenges, as reflected in the reduction of overall costs and enhanced profitability.

The management of Trust Modaraba has expressed optimism about the future, citing ongoing government measures that have led to improved economic indicators like the strengthening of the Pak rupee and a decrease in petroleum prices as promising signs that bode well for sustained economic stability and growth.