Karachi: MCB Investment Management Limited, the management company of the Alhamra Daily Dividend Fund, has announced its financial results for the half year ending December 31, 2024. The results were approved by the Board of Directors during a meeting held at the company’s head office in Karachi on February 4, 2025. The report reveals a notable decrease in profits compared to the same period in the previous year.

According to the financial statement, the total income for the half-year period amounted to 245.79 million rupees, a decline from 278.63 million rupees reported in the corresponding period of 2023. The income was primarily driven by profit on savings accounts, which contributed 104.61 million rupees, and income on corporate sukuk certificates, which added another 141.18 million rupees. Despite the lower income, the management decided not to disclose the earnings per unit, citing the impracticability of calculating the weighted average number of units.

The report also detailed the expenses incurred during the period. Total expenses for the half-year amounted to 25.01 million rupees, up from 20.81 million rupees in the same period last year. The increase in expenses was largely due to higher remuneration paid to MCB Investment Management Limited and associated Sindh sales tax. Consequently, net income before taxation stood at 220.78 million rupees, down from 257.82 million rupees in 2023.

According to information available from the Pakistan Stock Exchange (PSX), MCB Investment Management Limited experienced substantial redemptions of units, amounting to 18.50 billion rupees, compared to issuances of 5.71 billion rupees. This resulted in a net cash outflow from financing activities, leading to a significant decrease in cash and cash equivalents at the end of the period, which fell to 1.77 billion rupees from 11.99 billion rupees at the start of the period.

The company's net assets at the end of the period were valued at 2.16 billion rupees, down from 2.78 billion rupees at the end of the previous year. Despite the reduction in net assets, the net asset value per unit remained stable at 100.00 rupees. The financial results underscore the challenges faced by MCB Investment Management Limited in maintaining profitability amid fluctuating market conditions. The designated market category for this financial report is the Alhamra Daily Dividend Fund.

Overall, the financial results reflect a challenging half-year period for MCB Investment Management Limited, marked by declining income and increased expenses, which have impacted the fund's profitability and cash flow position.