Karachi: Sindh Modaraba has announced a substantial increase in its annual profits for the fiscal year ended June 30, 2024. The financial statements released reveal that the profit after taxation reached PKR 201.33 million, a significant rise from PKR 130.41 million reported the previous year. This growth is attributed to increased income across various investment avenues.
The company's total income for the year stood at PKR 407.34 million, compared to PKR 279.66 million in 2023. The increase was primarily driven by higher earnings from diminishing Musharaka, term deposit receipts, and other banking activities. Income from diminishing Musharaka rose from PKR 162.28 million to PKR 198.03 million, while earnings from term deposit receipts more than doubled, reaching PKR 153.90 million from PKR 71.92 million.
Administrative and operating expenses slightly increased to PKR 64.57 million, up from PKR 64.09 million last year. However, the Modaraba managed to improve its net income through effective cost controls and a reversal for doubtful receivables, which contributed PKR 2.86 million.
According to information available from the Pakistan Stock Exchange (PSX), the other comprehensive income for the year slightly decreased. The company reported a net other income of PKR 686,172, a decrease from PKR 1.24 million last year. The Modaraba's earnings per certificate also saw a remarkable increase, reporting PKR 4.47 compared to PKR 2.90 in 2023.
Despite these gains, the company faced a higher provision for taxation, amounting to PKR 105.16 million, which is significantly higher than the PKR 64.16 million charged last year. Moreover, the Modaraba Management Company's remuneration also increased to PKR 34.63 million from PKR 21.94 million, alongside a higher provision for Sindh sales tax on this remuneration.
The overall financial health of Sindh Modaraba appears robust, with a total comprehensive income for the year reported at PKR 201.19 million, compared to PKR 130.42 million in the previous year, reflecting a healthy increase despite the challenging economic environment.