Karachi: The latest financial data released by First Equity Modaraba for the quarter ended September 30, 2024, indicates a significant shift in their financial health across two distinct sectors, with one showing a stark improvement in profitability while the other continues to struggle with increased losses.

In the initial segment, First Equity Modaraba reported an income of 1.69 billion Rupees for September 2024, a significant increase from 449.67 million Rupees in September 2023. However, this growth in income was offset by operating expenses, which amounted to 4.83 billion Rupees, down slightly from 5.08 billion Rupees the previous year. The net result was a loss before tax of 3.04 billion Rupees, compared to a loss of 4.52 billion Rupees in 2023. According to information available from the Pakistan Stock Exchange (PSX), these figures show an improvement in the company's efficiency in reducing operating expenses year-over-year.

In contrast, the broader performance of the company paints a different picture. First Equity Modaraba's total income for the same period soared to 34.04 billion Rupees, up from 41.18 billion Rupees in the previous year. Despite the reduction in operating and selling expenses from 31.45 billion Rupees to 26.93 billion Rupees, the company reported an operating profit of 60.97 billion Rupees—an exceptional increase from 9.72 billion Rupees in 2023. After accounting for financial and other charges, the profit before taxation stood at a substantial 71.49 billion Rupees.

However, taxation adjustments, including a significant deferred tax benefit of 28.88 billion Rupees, led to a reported profit for the period of -42.61 billion Rupees, a deterioration compared to -7.13 billion Rupees last year. Earnings per certificate reflected this downturn, with a loss of 0.81 Rupees per certificate compared to a loss of 0.14 Rupees per certificate in the prior year.

This financial update reflects First Equity Modaraba’s mixed fortunes, where significant operational improvements in one sector were overshadowed by financial adjustments leading to increased losses in the overall financial landscape.