Karachi: Chashma Sugar Mills Limited has reported a financial downturn for the quarter and half-year ending on March 31, 2025, reflecting a challenging business environment. The company's board of directors approved the financial results during their meeting on May 27, 2025.

For the quarter ending March 31, 2025, the company recorded gross sales of 5,317.67 million rupees, a decrease from the 6,397.18 million rupees reported during the same quarter in 2024. After accounting for sales tax, government levies, and discounts amounting to 755.91 million rupees, the net sales were reported at 4,561.76 million rupees, compared to 5,670.88 million rupees in the previous year.

The cost of sales for the quarter totaled 4,292.45 million rupees, resulting in a gross profit of 269.32 million rupees, significantly lower than the 971.92 million rupees reported in the corresponding period of 2024. Selling and distribution expenses increased to 298.31 million rupees, and administrative and general expenses rose to 349.80 million rupees.

The company reported a loss from operations of 235.70 million rupees, a decline from a profit of 579.80 million rupees in the previous year. The net finance cost was recorded at 780.32 million rupees, which contributed to a loss before revenue tax and income tax of 1,016.01 million rupees, compared to a loss of 677.89 million rupees in the same quarter of the previous year.

Income tax expenses for the quarter were 478.40 million rupees, leading to a net loss of 595.28 million rupees. The loss per share for the quarter was 20.75 rupees, compared to a loss of 17.54 rupees per share in the prior year.

For the six-month period ending March 31, 2025, the company reported gross sales of 11,253.62 million rupees, a decrease from 13,390.69 million rupees during the same period in 2024. Net sales for the period were 9,952.89 million rupees, down from 11,937.88 million rupees in the previous year.

The cost of sales for the half-year was 9,607.99 million rupees, resulting in a gross profit of 344.90 million rupees, compared to 2,858.14 million rupees in the corresponding period of the previous year. The loss from operations for the six-month period was 257.56 million rupees, a stark contrast to a profit of 1,949.62 million rupees reported in 2024.

Net finance costs for the half-year were 1,834.51 million rupees. The company reported a loss before income tax of 2,217.15 million rupees, compared to a profit of 14.67 million rupees in the previous year. Income tax expenses were 974.73 million rupees, resulting in a net loss of 1,242.42 million rupees for the six-month period.

According to information available from the Pakistan Stock Exchange (PSX), the loss per share for the six-month period was 43.30 rupees, compared to earnings of 1.56 rupees per share in the corresponding period of the previous year.

The financial results highlight the company's challenges in managing rising costs and declining sales amid a volatile market environment.