Karachi: The Board of Directors of the Popular Islamic Modaraba Management Company (Pvt.) Limited, the management company of Popular Islamic Modaraba, announced a significant increase in its quarterly profit after taxation. For the quarter ended September 30, 2024, the profit after taxation rose to Rs. 5.37 million, marking a 149% increase from Rs. 2.16 million in the corresponding period last year.

The unaudited financial results for the first quarter of fiscal year 2024 revealed that Modaraba's income reached Rs. 11.42 million, compared to Rs. 7.69 million in the previous year. This substantial growth in income contributed to an increase in profit before taxation to Rs. 7.56 million from Rs. 3.04 million a year earlier. According to information available from the Pakistan Stock Exchange (PSX), these improvements in financial performance can be attributed to effective cost management and strategic asset growth.

During this period, operating expenses were slightly higher at Rs. 1.93 million, up from Rs. 1.78 million. The depreciation of Ijarah assets decreased to Rs. 1.47 million from Rs. 2.69 million, alleviating some of the financial pressure on the Modaraba. Management fees and associated sales tax also saw a decrease in total costs.

After accounting for taxation, which was Rs. 2.19 million up from Rs. 0.88 million in the previous year, the profit after taxation stood at a commendable Rs. 5.37 million. Earnings per certificate increased to Re. 0.27 from Re. 0.15.

The management of Modaraba, in response to the withdrawal of tax exemptions, has taken proactive steps to enhance business practices to ensure sustained profitability and better returns for certificate holders. The company acknowledged the continuous support from the Registrar of Modarabas, the Securities and Exchange Commission of Pakistan, and the Pakistan Stock Exchange, expressing gratitude and a desire for ongoing collaboration.

The management's future outlook remains optimistic as they continue to leverage the balance sheet effectively, aiming to build and maintain a high-quality asset portfolio for continued financial growth.