Karachi: First Al-Noor Modaraba has reported a decline in its financial performance for the six-month period ending December 31, 2024, marking a challenging year for the investment management firm. The condensed interim statement of financial position reveals a slight increase in total assets, which rose marginally to 270.48 million rupees from 269.12 million rupees as of June 30, 2024.

The current assets witnessed a notable shift, with cash and bank balances decreasing significantly to 30.36 million rupees from 92.71 million rupees. Conversely, stock in trade saw a substantial rise, reaching 163.77 million rupees compared to 78.66 million rupees previously. Short-term investments also experienced a decline, standing at 33.91 million rupees, down from 38.80 million rupees.

Non-current assets decreased to 28.35 million rupees from 43.30 million rupees, driven by reductions in long-term investments and diminishing musharakah financing. Long-term investments fell to 22.33 million rupees from 36.31 million rupees, while diminishing musharakah financing dropped to 0.43 million rupees from 1.07 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), First Al-Noor Modaraba's issued, subscribed, and paid-up certificate capital remained unchanged at 231.00 million rupees. However, the firm's total liabilities increased to 14.64 million rupees from 13.18 million rupees, primarily due to a rise in current liabilities such as creditors, accrued and other liabilities, which grew to 2.69 million rupees from 1.14 million rupees.

The financial results for the period also indicated a loss, with a comprehensive income loss of 0.97 million rupees. The profit after taxation recorded a deficit of 0.48 million rupees, a reversal from the profit of 2.60 million rupees reported in the corresponding period last year. The deficit on the revaluation of investments contributed to the negative outcome, registering at 0.73 million rupees.

Cash flow from operating activities showed a significant decrease, with net cash used amounting to 63.15 million rupees, compared to a positive cash flow of 97.83 million rupees during the same period in the previous year. This downturn was largely attributed to a decrease in stock in trade and other current assets, alongside an increase in operating losses before working capital changes.

The firm's financial outlook remains cautious as it navigates the challenges presented by the current economic environment. The management’s focus on strategic investments and cost management will be crucial in steering First Al-Noor Modaraba towards improved financial stability in the coming quarters.