Karachi: Popular Islamic Modaraba (PIM) showcased a strong financial performance in the fiscal year ending June 30, 2024, with significant improvements in profitability and strategic expansions in its capital structure. The Karachi-based Islamic financial institution, managed by Popular Islamic Modaraba Management Company (Private) Limited, continues to adhere strictly to Islamic financing principles, reflecting its robust compliance with Shariah mandates.
In a detailed annual financial disclosure, PIM reported a substantial 64.83% increase in income, achieving PKR 45.693 million compared to PKR 27.721 million the previous year. This robust growth is attributed to successful recovery strategies for bad debts and prudent risk management practices. According to information available from the Pakistan Stock Exchange (PSX), the company has also notably increased its authorized capital from PKR 140 million to PKR 200 million, demonstrating a confident outlook and readiness for future growth initiatives.
The Modaraba’s profit after taxation saw an impressive rise to PKR 24.696 million from PKR 7.974 million, marking an increase of over 200%. The earnings per certificate surged to PKR 1.76 from PKR 0.57, reflecting the institution's strong operational performance and effective financial management. These achievements are further bolstered by the approval for the conversion of a PKR 60 million loan into equity, completed by September 30, 2024, which significantly strengthens the Modaraba's financial base.
Amidst these financial advancements, PIM has maintained a keen focus on Shariah compliance, with continuous oversight and guidance from its Shariah advisors. The Modaraba's dedication to ethical business practices and its commitment to contributing positively to society and its stakeholders have been pivotal in its operations.
As part of its forward-looking strategies, PIM has reduced the management fee from 10% to 5% for the year, allowing for a generous profit distribution of PKR 1 per certificate. This decision reflects the management's commitment to providing value to its certificate holders and maintaining a competitive edge in the market.
In addition to its financial achievements, PIM has also adhered strictly to corporate governance norms, ensuring transparent and efficient management practices that align with regulatory standards and stakeholder expectations.
The Modaraba's management expresses its gratitude to its shareholders, the Securities and Exchange Commission of Pakistan, the Pakistan Stock Exchange, and all other stakeholders for their continued trust and support. Looking ahead, PIM is poised for sustained growth and is actively exploring further opportunities to expand its portfolio in compliance with Islamic financial principles.