Karachi: Ansari Sugar Mills Limited disclosed its financial results for the half-year ended March 31, 2023, reporting a notable shift in its fiscal standing with a loss after taxation of 301.58 million rupees, a stark contrast to the profit of 26.08 million rupees in the same period last year.

In the detailed breakdown for the second quarter ending March 31, 2023, the company’s revenue stood at 174.75 million rupees compared to 885.60 million rupees in the first quarter, showing a significant decline. The cost of sales also dropped from 621.82 million rupees in the first quarter to 129.51 million rupees in the second quarter. Consequently, the gross profit for the second quarter was 45.24 million rupees, down from 263.78 million rupees.

Operating expenses for the period included selling and distribution costs of 624,608 rupees and administrative expenses totaling 10.99 million rupees, leading to total operating expenses of 11.62 million rupees. The finance costs, however, escalated dramatically to 210.35 million rupees from 138.24 million rupees in the first quarter, contributing significantly to the financial loss before taxation which amounted to 176.72 million rupees for the second quarter alone.

According to information available from the Pakistan Stock Exchange (PSX), this downturn reflects broader trends within the sector, influenced by both market dynamics and internal fiscal strategies. For the half-year period, the net loss amounted to 361.28 million rupees, driven largely by increased finance costs totaling 407.99 million rupees against a backdrop of declining revenues and high operational costs.

The company’s earnings per share also reflected this downturn, with a basic and diluted loss per share of 5.37 rupees for the half-year, compared to an earnings of 0.46 rupees per share in the prior year.

This financial snapshot underscores the volatile nature of the sugar industry’s economic environment and the challenges faced by Ansari Sugar Mills in navigating market pressures and operational costs.