Lahore: In a remarkable financial turnaround, First Elite Capital Modaraba (FECM) reported a profit after taxation of PKR 23.64 million for the fiscal year ending June 30, 2024, as compared to a loss of PKR 7.06 million in the previous year. The Modaraba's financial achievements were detailed in its recently released annual report.

This fiscal year's performance was primarily bolstered by significant gains in investment property valuations, showcasing a profit in stark contrast to last year's losses. The total income for FECM soared to PKR 69.32 million, nearly doubling from PKR 34.00 million in 2023, driven largely by a fair value gain on investment properties amounting to PKR 30.92 million.

According to information available from the Pakistan Stock Exchange (PSX), the comprehensive income also painted a positive picture with a total rise to PKR 29.49 million from a loss of PKR 6.74 million the year before. The FECM managed to significantly reduce its accumulated losses from PKR 40.67 million in 2023 to PKR 17.03 million in 2024, demonstrating effective management and robust business strategies.

The Modaraba's asset base expanded from PKR 162.90 million to PKR 201.34 million, thanks to an increase in both current and non-current assets. Notably, investment property values surged from PKR 23.53 million to PKR 54.45 million, contributing majorly to the asset growth.

Despite the challenging economic environment marked by inflationary pressures and political instability in Pakistan, FECM did not declare a dividend for the year, prioritizing the consolidation of its financial health. The strategic focus remains on enhancing Ijarah (leasing) portfolio and exploring profitable ventures to ensure sustained growth.

This financial rebound aligns with the broader economic measures taken by the government to stabilize the economy, which include easing interest rates and curtailing non-essential imports.