⚡ Flash Summary
Pakistan Cash Management Fund’s financial results for the quarter ended September 30, 2025, show a significant decrease in net income after taxation, dropping from PKR 629.172 million in 2024 to PKR 116.899 million in 2025. This decline is primarily attributed to a substantial reduction in income from government securities and profit on bank deposits. Despite the decrease in profitability, the fund maintained a stable Net Asset Value (NAV) per unit at PKR 50.4678. The fund’s strategy focused on managing expenses and maintaining a consistent NAV in a challenging economic environment.
📌 Key Takeaways
- 📉 Net income after taxation decreased significantly to PKR 116.899 million in Q3 2025, compared to PKR 629.172 million in Q3 2024.
- 💰 Income from government securities dropped from PKR 505.806 million in Q3 2024 to PKR 58.933 million in Q3 2025.
- 🏦 Profit on bank deposits decreased from PKR 84.474 million in Q3 2024 to PKR 61.662 million in Q3 2025.
- 💸 Capital gain on sale of investments decreased from PKR 20.799 million to PKR 7.673 million.
- 📊 Total income decreased significantly from PKR 676.817 million to PKR 132.327 million.
- ✅ Total expenses decreased from PKR 47.645 million to PKR 15.428 million.
- 🏢 Remuneration of MCB Investment Management Limited decreased from PKR 36.171 million to PKR 11.375 million.
- 🏦 Net cash generated from operating activities increased from PKR 786.458 million to PKR 2,060.009 million.
- 💸 Net cash used in financing activities shifted from an inflow of PKR 694.769 million to an outflow of PKR (15,831.247) million.
- ⚖️ Total assets increased from PKR 6,334.172 million to PKR 7,132.310 million.
- 🏦 Balances with banks increased from PKR 3,210.919 million to PKR 5,965.696 million.
- Investment in securities decreased from PKR 3,026.712 million to PKR 1,123.600 million.
- ⬆️ The number of units in issue increased from 124,806,025 to 140,888,902 units.
- ✔️ NAV per unit remained stable at PKR 50.4678.
🎯 Investment Thesis
HOLD. Given the significant decrease in profitability and stable NAV, a HOLD recommendation is appropriate. While the fund has managed to maintain its value, the reduced income streams pose a concern for future returns. A review of the fund’s investment strategy and market conditions is necessary before considering a BUY or SELL decision. Price target is maintained at PKR 50.4678 per unit.
Disclaimer: AI-generated analysis. Not financial advice.