Lahore: Awwal Modaraba Management Limited (AMML), now operating under the name Wasl Mobility Modaraba, has reported a decline in its financial performance for the nine-month period ending March 31, 2025. The report, released by the management company, highlights significant changes and challenges faced during the recent ownership transition.
The transition began when the Registrar Modaraba, Securities granted approval on September 19, 2024, for the sale and transfer of AMML's total shares from Pak Brunei Investment Company Limited to Wasl Investment Finance Limited. The transfer was finalized on November 26, 2024, effectively shifting control of AMML to Wasl Investment Finance Limited.
As part of the restructuring, the Modaraba's name was changed to Wasl Mobility Modaraba on March 25, 2025, following approval from the Registrar Modarabas. Additionally, the Modaraba's head office has been relocated to Lahore, a move anticipated to expand its business volume and client base. A branch office in Karachi remains operational to serve existing customers.
Regarding financial performance, the Modaraba experienced a reduction in overall revenues to PKR 114.85 million from PKR 151.16 million in the same period last year, attributed to a reduced portfolio size. This reduction was a result of halting new loan originations during the ownership transfer process, which spanned from April 4, 2024, when the Sale Purchase Agreement (SPA) was signed, to November 26, 2024, when the transaction concluded. Additionally, declining interest rates are expected to further impact income generation.
Operating expenses for the period decreased to PKR 88.48 million, while financial expenses dropped to PKR 20.70 million, compared to the previous year's corresponding period. The Modaraba's net profit stood at PKR 16.41 million, a notable decline from the PKR 59.67 million recorded in the prior year. To counteract the financial downturn, the new management has introduced new products aimed at enhancing profitability.
The change in ownership also brought about a shift in leadership. Following the completion of the shareholding transfer to Wasl Investment Finance Limited, four directors and the Chief Executive Officer resigned. The Securities & Exchange Commission of Pakistan and Registrar Modaraba have approved the appointments of new directors and a CEO.
According to information available from the Pakistan Stock Exchange (PSX), the Modaraba is categorized under the financial sector. The Board of Directors expressed their gratitude to the SECP and Registrar Modaraba for their continued guidance and support during this transitional phase. They also extended their appreciation to customers and investors for their ongoing trust in the Modaraba.