Karachi: Popular Islamic Modaraba, under the management of Popular Islamic Modaraba Management Company (Pvt.) Limited, reported a substantial increase in its financial performance for the quarter ending March 31, 2025. The directors' report, presented alongside the condensed interim financial information, highlighted the company's growth in income and profitability during this period.

The Modaraba's total income for the quarter increased by 24.9% compared to the same quarter in the previous year. This rise was attributed to an increase in business volume and improved efficiency in asset utilization. Operating expenses experienced a marginal decrease of 4.6%, despite prevailing inflationary challenges, reflecting the effectiveness of cost control measures implemented by the company. Additionally, depreciation on Ijarah assets decreased to Rs. 3.47 million from Rs. 5.70 million in the corresponding period last year, due to optimized asset management.

Profit before taxation saw a significant rise of 62.6%, reaching Rs. 24.02 million, compared to Rs. 14.77 million in the previous year. After accounting for a tax expense of Rs. 6.97 million, the total comprehensive income for the quarter was Rs. 17.06 million, representing a growth of 62.7%. Furthermore, the earnings per certificate (both basic and diluted) increased to Rs. 1.00 from Rs. 0.75, indicating enhanced returns for certificate holders.

According to information available from the Pakistan Stock Exchange (PSX), Popular Islamic Modaraba is positioned within the designated market category and has shown consistent performance improvements. The Board remains optimistic about sustaining this growth trajectory, underpinned by a stable economic environment, prudent risk management, and a focus on Shariah-compliant investments.

Looking ahead, the Modaraba's strategic plans include expanding its asset base and improving operational efficiencies. The management is actively exploring new opportunities in Islamic financing and DM to bolster its asset portfolio while ensuring stringent adherence to Shariah principles.

The Modaraba acknowledged the support and guidance received from the Registrar Modarabas, Securities and Exchange Commission of Pakistan, and the NBFI and Modaraba Association of Pakistan during the review period, expressing a desire for continued collaboration in the future.