Karachi: Shahtaj Sugar Mills Limited has reported a significant decline in its net profit for the first quarter ended December 31, 2024, as revealed in the company's un-audited financial statements. Despite maintaining a solid revenue stream, the company's profit margins were adversely affected by rising costs and other financial obligations. The Board of Directors, during their meeting on January 28, 2025, decided against recommending any cash dividend or other benefits to shareholders.

For the quarter ending December 31, 2024, Shahtaj Sugar Mills Limited recorded a net revenue of 2.29 billion rupees, a decrease from the 2.47 billion rupees reported in the same period of the previous year. The cost of revenue rose to 2.10 billion rupees from 1.87 billion rupees, leading to a reduced gross profit of 185.97 million rupees, compared to 598.41 million rupees in the previous year.

Administrative and distribution costs further impacted the company's profitability. Distribution costs increased to 7.83 million rupees, and administrative expenses were slightly up at 95.36 million rupees. Other operating expenses saw a substantial decrease to 2.65 million rupees from 31.74 million rupees the previous year, contributing to a total operating expenditure of 105.83 million rupees.

The company managed to gain some relief through other income, which amounted to 17.29 million rupees, boosting the profit from operations to 97.43 million rupees, down from 472.48 million rupees in the corresponding quarter of the previous year. However, increased finance costs, which rose to 61.80 million rupees, significantly curtailed the net profit.

According to information available from the Pakistan Stock Exchange (PSX), Shahtaj Sugar Mills Limited's profit before income tax and levy was 35.63 million rupees, a steep decline from the 428.26 million rupees recorded in the first quarter of 2023. The levy and taxation further reduced the profit before income taxation to 6.84 million rupees, compared to 427.14 million rupees a year earlier.

The final profit for the period stood at a mere 6.84 million rupees, a sharp fall from the 269.09 million rupees reported in the first quarter of 2023. This translated to earnings per share of 0.57 rupees, significantly down from 22.40 rupees in the previous year.

The company is set to release its quarterly report through PUCARS separately, adhering to the designated market category time specifications.