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The First IBL Modaraba released its condensed interim financial statements for the period ended September 30, 2024. Here’s a detailed analysis of the financial performance based on the statements provided.
Key Highlights
- Board Decision:
- The Board of Directors of First IBL Modaraba met on November 18, 2024, to approve the accounts for the mentioned period.
- There were no declarations of cash dividends, bonus certificates, right certificates, or any other corporate actions.
- Assets Overview:
- Total Assets increased to PKR 247.96 million as of September 30, 2024, from PKR 241.81 million in June 2024.
- A significant growth in cash and bank balances was observed, climbing to PKR 151.79 million, compared to PKR 106.24 million in June 2024.
- Short-term investments and receivables remained stable, while the fixed assets under Ijarah increased slightly.
- Liabilities:
- The company’s total liabilities reached PKR 32.04 million, a marginal increase from PKR 31.15 million in June 2024.
- Non-current liabilities rose due to an increase in long-term security deposits.
- Net Assets:
- The net assets grew to PKR 215.92 million in September 2024, reflecting a positive trend compared to PKR 210.65 million in June 2024.
Profit & Loss Analysis (Quarter Comparison: Sep 2024 vs. Sep 2023)
- Income from Operations:
- The income from Ijarah rentals was PKR 4.13 million, slightly higher than PKR 4.02 million for the same quarter in 2023.
- However, the profit from Musharaka investments declined significantly to PKR 1.11 million compared to PKR 5.41 million in the previous year.
- Other Income:
- Income from investment properties remained consistent at PKR 1.87 million.
- Total income stood at PKR 12.56 million, marking a reduction compared to PKR 12.93 million in the corresponding quarter of 2023.
- Expenses:
- Administrative expenses for the quarter totaled PKR 3.33 million, a slight reduction from PKR 3.83 million in the previous year.
- Depreciation on assets under Ijarah was recorded at PKR 3.04 million, aligning closely with the prior year.
- Profitability:
- Profit before taxation amounted to PKR 5.45 million, reflecting stable performance compared to PKR 5.39 million in September 2023.
- Net profit for the quarter was PKR 5.26 million, marginally higher than PKR 5.20 million in the previous year.
- Earnings Per Certificate:
- The profit per certificate remained constant at PKR 0.24, indicating stability in shareholder returns.
Key Observations
- Liquidity Strength:
The company has strengthened its liquidity position with a notable rise in cash and bank balances. This indicates a conservative approach, focusing on maintaining robust liquidity. - Operational Stability:
While operational income from Ijarah remained steady, the decline in Musharaka profits could be an area of concern for the management. - Sustainable Profitability:
The consistent profitability and stable earnings per certificate highlight the company’s ability to maintain shareholder value despite income fluctuations.