Karachi: First Habib Modaraba, a prominent entity in the non-banking financial sector, has announced its financial results for the half-year ending December 31, 2024. The results, approved during a board meeting of Habib Metropolitan Modaraba Management Company (Private) Limited on February 25, 2025, reveal key financial metrics and operational performance.

The financial report highlights that the income from diminishing musharaka financing reached 2.72 billion PKR, a notable increase from 2.47 billion PKR during the same period in the previous year. Despite the growth in income, the provision in respect of diminishing musharaka financing saw a significant reduction to 96.37 million PKR from the previous year's 191.94 million PKR. Administrative expenses also saw a slight rise to 125.70 million PKR compared to 122.61 million PKR in the prior year.

The net profit after taxation for the half-year stood at 468.53 million PKR, a slight decrease from the 473.77 million PKR recorded in the corresponding period of 2023. Meanwhile, earnings per certificate (basic and diluted) were reported at 4.23 PKR, marginally down from 4.28 PKR in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the entity declared no cash dividends, bonus shares, or other entitlements for the period. The financial charges incurred during the half-year increased to 1.85 billion PKR from 1.62 billion PKR in the previous year, impacting the overall profitability.

In terms of cash flow, the company reported a net cash outflow from operating activities amounting to 6.77 billion PKR, a substantial rise from the 3.70 billion PKR outflow in the prior year. This was primarily driven by changes in working capital and the settlement of financial charges. Conversely, net cash inflow from financing activities was reported at 3.63 billion PKR, up from 2.03 billion PKR in the previous period, reflecting increased activity in Running Musharaka and certificates of investment.

The condensed interim statement also shows a decrease in cash and cash equivalents, which stood at a negative 5.15 billion PKR at the end of the period, compared to a negative 1.91 billion PKR at the beginning.

Overall, First Habib Modaraba's financial performance for the half-year ending December 31, 2024, reflects a complex interplay of income growth, increased financial charges, and strategic cash flow management. The detailed report is expected to be transmitted through the Pakistan Unified Corporate Action Reporting System (PUCARS) within the specified timeframe.