Khairpur: Khairpur Sugar Mills Limited has reported notable growth in its operational and financial performance for the fiscal year ended September 30, 2024. The company’s corporate briefing session highlighted significant increases in sugar production and improvements in various financial metrics. This comes as a promising development for stakeholders in the designated market category of the Pakistan Stock Exchange (PSX).
On October 30, 2024, Khairpur Sugar Mills revealed its operational trends, showing a substantial increase in sugarcane crushing and sugar production. The company crushed 831,344 metric tons of sugarcane, a 72% increase from 483,068 metric tons in 2023. This resulted in the production of 89,731 metric tons of sugar, an 84% rise from the previous year’s 48,635 metric tons. The average sucrose recovery improved to 10.794%, compared to 10.07% in 2023.
The company also extended its crushing days to 115, up from 95 days in the prior year, with an average daily crushing rate of 7,229 metric tons, compared to 5,085 metric tons in 2023. This increase in operational efficiency has translated into enhanced financial outcomes.
In the financial realm, Khairpur Sugar Mills reported a turnover of 11.36 billion PKR, more than double the 4.49 billion PKR reported in 2023. Gross profit increased to 1.17 billion PKR from 796.90 million PKR, while operating profit surged to 826.68 million PKR from 528.17 million PKR in 2023. Pre-tax profit experienced a significant boost to 258.20 million PKR, up from 113.46 million PKR. After-tax profit also increased notably to 59.83 million PKR from 17.36 million PKR in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company’s balance sheet reflected a slight increase in total equity and liabilities, rising to 8.79 billion PKR from 8.75 billion PKR in 2023. Shareholders’ equity improved to 4.06 billion PKR from 4.01 billion PKR. There was a decrease in non-current liabilities, which fell to 1.19 billion PKR from 1.32 billion PKR, while current liabilities increased slightly to 3.54 billion PKR from 3.43 billion PKR.
The company’s cash flow from operating activities turned positive, recording 208.90 million PKR in contrast to a negative cash flow of 373.18 million PKR in 2023. However, cash flow from investing activities remained negative at 152.84 million PKR, albeit a slight improvement from the previous year’s 164.73 million PKR. Financing activities recorded negative cash flow of 2.11 million PKR, contrasting with a positive cash flow of 389.64 million PKR in 2023. Cash and cash equivalents at the end of the year increased to 82.25 million PKR, up from 28.30 million PKR.
Despite the positive developments in operational and financial performance, the gross profit margin declined to 10.31% from 17.76%, and the net profit margin slightly increased to 0.53% from 0.39%. Liquidity ratios remained stable, with the current ratio at 1.08 and the quick/acid test ratio at 0.45.
Khairpur Sugar Mills’ latest financial performance indicates a strong operational year with significant improvements in production and financial efficiency. The company’s focus on operational expansion and financial stability has positioned it well for future growth within the industry.