Karachi: In a year marred by heightened operational costs and minimal financial relief, First Equity Modaraba reported a significant increase in net losses for the fiscal year ended June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the consolidated financial statements revealed a net income of -275.73 million, plummeting from the previous year's -119.31 million, underscoring a stark downturn in the company’s financial health.

The detailed statement showcased that operating expenses soared to 103.09 million in 2024, compared to 104.06 million in 2023. Despite a slight decrease in these expenses, distribution and selling expenses also declined slightly to 24.65 million from 24.84 million. However, these reductions were not sufficient to offset the overall financial burden, resulting in an operating loss of 403.47 million, up from 248.21 million in the previous year.

Financial charges further compounded the financial strain, with an increase to 115.92 million in 2024, up significantly from 61.83 million in 2023. This financial uptick starkly contrasts with a minimal increase in other income, which rose only to 8.95 million from 6.55 million.

Pre-tax losses expanded dramatically, hitting 510.45 million compared to 303.49 million in 2023, before accounting for taxes. After accounting for taxes, the net loss deepened to 414.10 million, a significant drop from the previous year's loss of 252.07 million. The loss per certificate also reflected this decline, worsening to -7.90 from -4.81.

These financial results, marked by escalating expenses and insufficient income, highlight the challenges faced by First Equity Modaraba in navigating the economic conditions of 2024. This performance underscores the need for strategic adjustments to curtail expenses and enhance revenue streams in forthcoming fiscal strategies.