Sindh Modaraba Reports Decrease in Quarterly Profit Amid Rising Operational Costs

Karachi: Sindh Modaraba has disclosed its financial performance for the quarter ended September 30, 2024, revealing a decrease in net profits compared to the same period last year, as operational expenses increased.

In the reported quarter, Sindh Modaraba achieved a total income of 97.85 million rupees, a decrease from 99.49 million rupees in the same quarter of the previous year. The income comprises earnings from diminishing musharaka, bank deposits, and term deposit receipts, which collectively witnessed a slight decline year-over-year.

According to information available from the Pakistan Stock Exchange (PSX), the administrative and operating expenses for the quarter rose to 21.47 million rupees from 15.30 million rupees in the same period last year, marking a significant increase that impacted the overall profitability. The company also reported a reversal of provision against diminishing musharaka amounting to 1.82 million rupees, which did not offset the rise in expenses.

Other income for the quarter stood at 230,165 rupees, a stark decrease from 91,900 rupees year-over-year. Additionally, the management company’s remuneration was slightly reduced to 7.84 million rupees from 8.54 million rupees.

The pre-tax profit for the quarter was recorded at 69.41 million rupees, down from 75.76 million rupees a year earlier. After accounting for a tax provision of 20.13 million rupees, the profit after tax settled at 49.28 million rupees, compared to 53.79 million rupees in the previous year’s quarter.

Earnings per certificate for the quarter were reported at 1.10, a decrease from 1.20 in the same quarter the previous year, reflecting the financial challenges faced during the period.

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