The profit after tax of Al Zamin Leasing Modaraba Limited has increased by 38 percent to Rs 44.211 million in the year ending June 30, as compared to Rs 31.962 million earned in the corresponding period in 2006 financial year. The earning per share of the Modaraba surged to Rs 1.74 in the period under review against Rs 1.25 in the same period last year.
A dividend of 12.5 percent for the year was announced by the Modaraba as against distribution of 10 percent of previous year. The year under review was a very successful and remarkable milestone in the continued growth and strength of Modaraba, Chief Executive Officer (CEO) of Al Zamin Leasing Modaraba Basheer A. Chowdry said.
"During the year, our assets increased from Rs 2,445 million to Rs 3,642 million, showing an increase of about 50 percent, which is the highest percentage of growth achieved by the Modaraba in any previous year", he added.
Besides increasing the lease portfolio from Rs 1,842 million to Rs 2,282 million, the planned strategies for diversification of portfolio, multiplication of revenue and improvement in the quality of portfolio was also achieved successfully, he said.
Consequently, he said Musharakah investments increased from Rs 181 million to Rs 556 million, showing a growth of about 207 percent. Investment in the diversification projects in the energy sector also increased from Rs 47 million to Rs 255 million, indicating a growth of 442 percent.
The process of diversification started last year included compressed natural gas (CNG) filling operations in five ventures. The Modaraba also participated in property development projects, which are yielding good results while providing fully secured investments.
To fund substantial disbursements during the year, Al Zamin mobilised fresh credit lines of Rs 810 million for three to five-year tenure, besides occasionally using short-term funding.
An important aspect of resource mobilisation was that Al Zamin raised direct funding from diverse investors to the extent of Rs 567 million through its own certificate of Musharakah. This, when added to the outstanding of Rs 529 million of the five year's TFCs issued previously by Al Zamin, indicates a level of successful mobilisation of funds through Al Zamin's own instruments. -PR