⚡ Flash Summary

MCB DCF Income Fund’s financial results for the quarter ended September 30, 2025, reveal a decrease in net income compared to the same period last year. Total income decreased significantly, driven by lower income from government securities and reduced gains on investment sales. Expenses increased slightly, impacting overall profitability. The fund’s net asset value (NAV) per unit increased marginally, while the number of units in issue decreased.

📌 Key Takeaways

• 📉 Total income decreased to PKR 575.64 million in Q3 2025 from PKR 1,174.54 million in Q3 2024.
• 🔻 Income from Government securities dropped from PKR 692.71 million to PKR 434.45 million year-over-year.
• 📉 Net gain on sale of investments significantly declined to PKR 10.72 million versus PKR 288.31 million.
• ⬆️ Mark-up on bank deposits and term deposit receipt increased from PKR 65.96 million to PKR 86.45 million.
• ➖ Unrealised (diminution)/appreciation on re-measurement of investments resulted in a loss of PKR 0.32 million compared to a gain of PKR 58.27 million.
• 📈 Total operating expenses rose slightly to PKR 97.75 million from PKR 92.10 million.
• 📉 Net income for the period decreased to PKR 477.89 million versus PKR 1,082.43 million in the prior year.
• 🔻 Net income after taxation decreased to PKR 477.89 million from PKR 1,082.43 million.
• ⬇️ Income already paid on units redeemed decreased from PKR 79.91 million to PKR 35.87 million.
• ⚖️ Accounting income available for distribution decreased to PKR 442.02 million from PKR 1,002.53 million.
• ⬆️ Net Assets Value per Unit (NAVPU) increased slightly to PKR 112.16 compared to PKR 109.53 as of June 30, 2025.
• ⬇️ Number of units in issue decreased from 189.59 million to 177.54 million.
• 💸 Net cash generated from operating activities totaled PKR 4,747.95 million compared to PKR 3,762.75 million.
• 💸 Net cash (used in)/generated from financing activities amounted to (PKR 1,331.81) million versus PKR 261.91 million.

🎯 Investment Thesis

HOLD. The fund’s decreased income and overall profitability raise concerns about its future performance. Although NAVPU increased slightly, the negative trends in income generation and expense management warrant caution. A more in-depth analysis, including a sector comparison and detailed portfolio breakdown, is needed before making a strong buy or sell recommendation. Price target to remain the same, as of last analysis.